Truist backs FDIC effort to aid mission-driven banks

The Federal Deposit Insurance Corp., which investment support from Truist Financial and Microsoft, is launching a fund supporting minority depository institutions and community development financial institutions.

The agency said in a press release Thursday that the Mission-Driven Bank Fund has $120 million in initial commitments. Truist and Microsoft are leading the investment fund, while Discovery will join as a founding investor.

“Microsoft and Truist have answered the call to become anchor investors and to assist the FDIC in developing this Fund for the benefit of mission-driven banks and, most importantly, the people and places these institutions serve,” FDIC Chairman Jelena McWilliams said in the release.

“It is our hope that with the commitment of these industry leaders, more private equity investors will join the growing ranks of those committed to building opportunity and prosperity where this support is needed the most,” McWilliams added.

The fund is expected to help MDIs and CDFIs provide affordable product and services, stimulate economy and community development, and build “opportunity and prosperity,” the release said.

The FDIC said it engaged about 70 CEOs from MDIs and CDFIs, along with their trade groups and potential investors, to discuss the project.

The FDIC will serve as an advisor but it will not contribute capital to, manage, or be involved in the fund’s investment decisions.

The Bank Slate

Truist backs FDIC effort to aid mission-driven banks

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The Bank Slate

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About the author

Paul Davis has 20+ years of experience following the banking industry. He is currently director of market intelligence at SRM, an advisory firm that operates in North America and Europe.

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