2026-12364NoticeWallet

OCC Tweaks Minority Bank Rules for Clarity

Published Date: 6/22/2026

Notice

Summary

The OCC just updated its rules for Minority Depository Institutions (MDIs), which are banks owned by socially and economically disadvantaged people. This update makes the rules clearer, matches the law better, and removes outdated info, so the policy stays useful for years. Current MDIs keep their status, and the changes took effect on June 16, 2026, with no new costs involved.

Analyzed Economic Effects

6 provisions identified: 4 benefits, 2 costs, 0 mixed.

Clear 51% Ownership Rule for MDIs

The OCC now defines a Minority Depository Institution (MDI) for national banks and Federal stock savings associations as being at least 51 percent owned by one or more socially and economically disadvantaged individuals, aligning the policy with section 308 of FIRREA. The statute does not presume any particular group is disadvantaged.

Current MDIs Kept (Grandfathered)

Banks that had an MDI designation the day before this policy statement was issued may keep their MDI designations. OCC examiners may reassess a maintained designation if the facts underlying the designation undergo a material change.

How Investments Count Toward 51% Rule

An investment in an MDI by a natural person only counts toward the 51 percent ownership threshold if that natural person is a socially and economically disadvantaged individual. An investment by a corporation, partnership, or entity only counts if that entity is itself an MDI or is at least 51 percent owned by one or more socially and economically disadvantaged individuals.

Mutual Savings Association MDI Test

A Federal mutual savings association is an MDI if the majority of its board of directors, its account holders, and the community it services are predominantly minority. The policy cites FIRREA section 306's definition of 'minority' to mean Black American, Native American, Hispanic American, or Asian American.

Foreign-Owned Subsidiaries Excluded

The policy states that, in addition to other requirements, an MDI may not be a U.S. subsidiary of a foreign-owned bank.

Two-Step Process to Form and Designate New MDIs

To form a de novo bank and get MDI designation you must (1) file an application and receive OCC approval to form the bank from OCC's Chartering, Organization & Structure team, and (2) request a separate MDI designation; the OCC will provide an MDI designation letter if the applicant demonstrates the bank meets the MDI definition.

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Key Dates

Effective Date
Published Date
6/16/2026
6/22/2026

Department and Agencies

Department
Independent Agency
Agency
Treasury Department
Comptroller of the Currency
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