Our next episode of the FDIC Podcast dives deeper into the banking sector and takes a closer look at a special kind of bank called a Minority Depository Institution (MDI). In our first episode, we heard from FDIC Chairman Jelena McWilliams about our current global public health emergency and the impact it is having on our banks, including MDIs.
Alden McDonald, President and Chief Executive Officer of Liberty Bank, an African American owned and managed bank operating in nine states, joins us in Episode 2 to talk about the critical role MDIs play in our nation’s banking system and how they serve the financial needs of communities of color. Here’s a snippet of what he told us:
I’ve been through a lot of economic downturns, and what we have found is that where the country may come out of a recession within three, three and half years, it takes almost 10 years for a minority community to come out of a recession… So, we’re anticipating that the unemployment rate in the African American community is going to be higher, [and] we have to design a business model to receive that. How do we offset or mitigate that risk, which is a little bit more challenging than the normal or average bank with a different mixture of business.
Mr. McDonald also serves as a member of the FDIC’s MDI Subcommittee to the Advisory Committee on Community Banking. Last December, Chairman McWilliams established the MDI Subcommittee to provide a platform for minority-owned and managed banks to build partnerships, to share best practices, and to highlight the work of MDIs in their communities. Read more about the FDIC’s efforts to preserve and promote MDIs.
We hope you find our latest episode informative. Please send us your comments and ideas for future episodes to communications@fdic.gov.