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Board of Governors of the Federal Reserve System
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Preserving Minority Depository Institutions

State-Member MDIs

The System retains primary supervisory responsibility for 17 state-member 7 MDIs (refer to appendix A), which are predominately community banks, 8 having total assets of $10 billion or less (see table 1).

Table 1. Asset distribution--state-member MDIs
Asset size Number of banks Percentage of total
$250 million or less 9 53%
$251 million to $500 million 3 18%
Over $500 million to $1 billion 1 5%
Over $1 billion to $10 billion 2 12%
Greater than $10 billion 2 12%
Total 17 100%

Source: Consolidated Reports of Condition, as of September 30, 2013

Accordingly, the System's community banking organizations program, which is responsible for the risk-focused supervision of state-member banks with less than $10 billion in total assets, maintains oversight responsibility for the System's portfolio of MDIs.


Geographic Dispersion

At year-end 2013, state-member MDIs were located in seven of the 12 Reserve Bank Districts, 9 with assets concentrated in the New York and San Francisco Districts (see table 2). State-member MDIs in these two Districts accounted for 97 percent of the MDI portfolio.

Table 2. State-member MDI distribution
Reserve Bank District Number of MDIs Total assets
(000s)
Percentage of total assets
Atlanta 1 $391,647 0.60%
Chicago 2 $322,143 0.49%
Dallas 1 $192,160 0.29%
Kansas City 5 $458,099 0.70%
New York 2 $35,491,658 54.27%
Philadelphia 1 $83,951 0.13%
San Francisco 5 $28,455,140 43.51%
Total 17 $65,394,798 100.00%

Source: Consolidated Reports of Condition, as of September 30, 2013

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Minority Ownership Type

The System's MDI portfolio includes banks representing all minority ownership 10 categories as defined by FIRREA. Consistent with national demographics for all MDIs, as of year-end 2013, most state-member MDIs were under Asian American ownership (figure 1).

Figure 1. State-member MDIs by minority type

State member MDIs by minority type. Pie chart. Values are as follows: Asian American: 47.06%; Hispanic American: 23.53%. Native American: 23.53%; Black American: 5.88%.

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References

7. The term "state-member" refers to state-chartered banks that are members of the Federal Reserve System. Return to text

8. For supervisory purposes, community banks are generally defined as those with less than $10 billion in total consolidated assets. Return to text

9. Reserve Banks for the 12 Districts are headquartered in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. Return to text

10. Section 308 of FIRREA, as amended by the Dodd-Frank Act, Title III, § 367(4), 12 U.S.C. § 1463 (2001 & Supp. 2013) defines the term "minority" as any black American, Native American, Hispanic American, or Asian American. In addition to institutions that meet the ownership test, the Board will consider an institution to be an MDI if a majority of its board of directors is minority and the community that the institution serves is predominantly minority. Return to text

Last update: July 15, 2014

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