On June 16, the OCC updated its policy statement on minority depository institutions (MDIs), saying the changes align the statement more closely with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and remove information the agency described as “vulnerable to obsolescence.” The OCC stated the update follows its review under Executive Order 14219 (previously covered by InfoBytes here) and relates to the agency’s rescission or amendment of regulations it identified as unnecessary, not based on the “best reading” of statutory authority, or lacking “clear statutory authority.” The bulletin applies to all OCC-supervised banks. According to the OCC, the updated policy statement aligns the MDI definition more closely with FIRREA. For national banks and federal stock savings associations, the policy defines an MDI as a bank at least 51 percent owned by one or more socially and economically disadvantaged individuals.

The policy statement also covers federal mutual savings associations where the majority of the board of directors, account holders, and community served are “predominantly minority.” For national banks and federal stock savings associations, the OCC said the statute does not identify any group presumed to be socially and economically disadvantaged. The OCC stated that maintaining current designations while updating the definition improves the policy statement’s consistency with FIRREA and minimizes disruption to current MDIs. The updated policy statement provides that banks with a designation the day before issuance may maintain it, but notes OCC examiners may reassess that designation if the underlying facts undergo a material change. The OCC also stated that the update replaces references to specific OCC structures and resources with general directions that are “unlikely to become obsolete.”