To establish or modify requirements relating to minority depository institutions, community development financial institutions, and impact banks, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
This bill strengthens support for community banks serving underserved populations by creating new designations and federal programs. It establishes an 'impact bank' designation for banks that lend heavily to low-income borrowers, expands the definition of minority depository institutions to include women-owned banks, and requires federal agencies to prioritize deposits in these institutions.
Who Benefits and How
Minority-owned banks, women-owned banks, and community development financial institutions benefit significantly. They gain access to federal deposits through the Minority Bank Deposit Program and a new custodial deposit program. The bill also raises the voting threshold for 'control' from 25% to 30% for these institutions, making it easier to attract outside investment without triggering regulatory requirements.
Who Bears the Burden and How
Federal banking agencies (OCC, FDIC, Fed, NCUA) face new requirements to establish advisory committees, develop impact bank designation programs, create diversity reports, and submit multiple annual reports to Congress. Large financial institutions may be asked to mentor smaller MDIs through mentor-protege programs.
Key Provisions
- Creates 'impact bank' designation for banks with 50%+ of loans to low-income borrowers
- Expands MDI definition to include women-owned banks (50%+ shares held by women)
- Requires federal agencies to prioritize using MDIs and impact banks for deposits
- Establishes Minority Depositories Advisory Committees at each banking regulator
- Creates custodial deposit program allowing Treasury accounts to deposit up to $100M in qualified banks
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Expands support for minority depository institutions (MDIs), community development financial institutions (CDFIs), and creates a new 'impact bank' designation to increase access to financial services in underserved communities
Key Policy Areas
Banking, Financial Services, Community Development, Minority Business
Primary Purpose
Expands support for minority depository institutions (MDIs), community development financial institutions (CDFIs), and creates a new 'impact bank' designation to increase access to financial services in underserved communities
Policy Domains
Ensuring Diversity in Community Banking Act
Identified Gains
Contextual inference, no direct clause citation- Minority depository institutions
- Women-owned banks
- Community development financial institutions
- Impact banks
- Low-income borrowers
- Underserved communities
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal banking agencies
- Federal departments and agencies
- Large financial institutions
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
IntroducedMr. Meeks (for himself, Mr. Green of Texas, Mr. Cleaver, …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Impact banks, Investors in community banks, Large commercial banks
Positive-direction: Impact banks, Investors in community banks, Minority depository institutions, Small community banks serving low-income borrowers
Negative-direction: Large commercial banks
CDFI Fund, Department of the Treasury, Federal Deposit Insurance Corporation
Community development financial institutions, Prospective community development financial institutions
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
- "administrator_sba"
- → Administrator of the Small Business Administration
- "administrator_cdfi"
- → Administrator of the Community Development Financial Institutions Fund
- "federal_banking_agencies"
- → Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and National Credit Union Administration
Key Definitions
Terms defined in this bill
Has the meaning given under section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702)
Has the meaning given under section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note), as amended by this Act
A depository institution with total consolidated assets of less than $10,000,000,000 where the total dollar value of loans to low-income borrowers is greater than or equal to 50 percent of assets
To be defined by rules jointly issued by the Federal banking agencies
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology