Bank of America Doubles MDI Deposits with Additional $100 Million to Support Minority Small Business Owners, Communities

Rhea-AI Summary

Bank of America announced an additional $100 million in low-cost deposits to minority depository institutions (MDIs), doubling its current investments. This initiative aims to enhance lending, housing, and banking services in minority and low-to-moderate-income communities. The total portfolio for MDIs and Community Development Financial Institutions (CDFIs) now stands at $2 billion. This program is part of Bank of America's commitment to advancing racial equality and supporting diverse communities through various financial investments, including $42.5 million in equity investments to 22 MDIs and CDFIs.

Positive

• Increased support for minority depository institutions with an additional $100 million deposit.
• Total funding for MDIs and CDFIs reaches $2 billion, enhancing their capacity to serve minority communities.
• Long-term commitment to advancing racial equality through significant financial investments, including $350 million for minority and women entrepreneurs.

Negative

• None.

NEW YORK, Oct. 4, 2022 /PRNewswire/ -- Bank of America today announced an additional $100 million in low-cost deposits to minority depository institutions (MDIs), which will facilitate lending, housing, neighborhood revitalization and other banking services in minority and low- to moderate-income communities.

This program will double Bank of America's existing $100 million in deposits in MDIs, part of the company's industry leading $2 billion portfolio of loans, deposits and investments in Community Development Financial Institutions (CDFIs) and MDIs. 

These low-cost deposits will help MDIs expand their lending capacity and leverage the investments made by Bank of America and other institutions across the U.S., as well as the U.S. Department of Treasury's Emergency Capital Investment Program (ECIP).

"It is well recognized that MDIs are a critical resource to minority and underserved communities by providing banking services, creating jobs and helping businesses grow," said D. Steve Boland, Chief Administrative Officer of Bank of America. "As a founding member of the Economic Opportunity Coalition, we are committed to finding innovative ways to scale and expand the reach of our capital to provide access to economic opportunities and support diverse communities across the country."

This builds on the company's longstanding work to advance racial equality and economic opportunity, including $42.5 million in equity investments to 22 MDI and CDFI banks, of which, Bank of America will acquire up to 4.9% of common equity. It also includes our commitment of $350 million to over 100 private equity funds that provide capital to minority and women entrepreneurs and small business owners.

MDIs are federal insured depository institutions for which (1) 51% or more of the voting stock is owned by minority individuals; or (2) a majority of the board of directors is minority and the community that the institution serves is predominantly minority.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 4,000 retail financial centers, approximately 16,000 ATMs and award-winning digital banking with approximately 55 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts. 

Reporters may contact:

Anu Ahluwalia, Bank of America       
Phone: 1.646.855.3375
anu.ahluwalia@bofa.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/bank-of-america-doubles-mdi-deposits-with-additional-100-million-to-support-minority-small-business-owners-communities-301640330.html

SOURCE Bank of America Corporation

FAQ

What is the purpose of Bank of America's additional $100 million deposit to MDIs?

The $100 million deposit aims to enhance lending, housing, and banking services in minority and low-to-moderate-income communities.

How much total funding has Bank of America allocated to MDIs and CDFIs?

Bank of America's total funding for minority depository institutions and Community Development Financial Institutions is now $2 billion.

What are minority depository institutions (MDIs)?

MDIs are federally insured depository institutions where 51% or more of the voting stock is owned by minority individuals or a majority of the board is minority.

How is Bank of America contributing to racial equality?

Bank of America is contributing to racial equality through financial investments, including $42.5 million in equity investments to MDIs and CDFIs and $350 million for minority and women entrepreneurs.

When was the announcement made regarding the additional funding for MDIs?

The announcement was made on October 4, 2022.