[Congressional Record Volume 166, Number 7 (Monday, January 13, 2020)]
[House]
[Pages H192-H194]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     EXPANDING OPPORTUNITY FOR MINORITY DEPOSITORY INSTITUTIONS ACT

  Ms. WATERS. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 5315) to amend the Financial Institutions Reform, Recovery, 
and Enforcement Act of 1989 to establish a Financial Agent Mentor-
Protege Program within the Department of the Treasury, and for other 
purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5315

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Expanding Opportunity for 
     Minority Depository Institutions Act'' or the ``Expanding 
     Opportunity for MDIs Act''.

     SEC. 2. ESTABLISHMENT OF FINANCIAL AGENT MENTOR-PROTEGE 
                   PROGRAM.

       (a) In General.--Section 308 of the Financial Institutions 
     Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 
     note) is amended by adding at the end the following new 
     subsection:
       ``(d) Financial Agent Mentor-Protege Program.--
       ``(1) In general.--The Secretary of the Treasury shall 
     establish a program to be known as the `Financial Agent 
     Mentor-Protege Program' (in this subsection referred to as 
     the `Program') under which a financial agent designated by 
     the Secretary or a large financial institution may serve as a 
     mentor, under guidance or regulations prescribed by the 
     Secretary, to a small financial institution to allow such 
     small financial institution--
       ``(A) to be prepared to perform as a financial agent; or
       ``(B) to improve capacity to provide services to the 
     customers of the small financial institution.
       ``(2) Outreach.--The Secretary shall hold outreach events 
     to promote the participation of financial agents, large 
     financial institutions, and small financial institutions in 
     the Program at least once a year.
       ``(3) Exclusion.--The Secretary shall issue guidance or 
     regulations to establish a process under which a financial 
     agent, large financial institution, or small financial 
     institution may be excluded from participation in the 
     Program.
       ``(4) Report.--The Office of Minority and Women Inclusion 
     of the Department of the Treasury shall include in the report 
     submitted to Congress under section 342(e) of the Dodd-Frank 
     Wall Street Reform and Consumer Protection Act information 
     pertaining to the Program, including--
       ``(A) the number of financial agents, large financial 
     institutions, and small financial institutions participating 
     in such Program; and
       ``(B) the number of outreach events described in paragraph 
     (2) held during the year covered by such report.
       ``(5) Definitions.--In this subsection:
       ``(A) Financial agent.--The term `financial agent' means 
     any national banking association designated by the Secretary 
     of the Treasury to be employed as a financial agent of the 
     Government.
       ``(B) Large financial institution.--The term `large 
     financial institution' means any entity regulated by the 
     Comptroller of the Currency, the Board of Governors of the 
     Federal Reserve System, the Federal Deposit Insurance 
     Corporation, or the National Credit Union Administration that 
     has total consolidated assets greater than or equal to 
     $50,000,000,000.
       ``(C) Small financial institution.--The term `small 
     financial institution' means--
       ``(i) any entity regulated by the Comptroller of the 
     Currency, the Board of Governors of the Federal Reserve 
     System, the Federal Deposit Insurance Corporation, or the 
     National Credit Union Administration that has total 
     consolidated assets lesser than or equal to $2,000,000,000; 
     or
       ``(ii) a minority depository institution.''.
       (b) Effective Date.--This Act and the amendments made by 
     this Act shall take effect 90 days after the date of the 
     enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
California (Ms. Waters) and the gentleman from Arkansas (Mr. Hill) each 
will control 20 minutes.
  The Chair recognizes the gentlewoman from California.


                             General Leave

  Ms. WATERS. Madam Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.
  Ms. WATERS. Madam Speaker, I yield myself such time as I may consume.
  I rise in support of H.R. 5315, the Expanding Opportunity for 
Minority Depository Institutions Act, which is sponsored by 
Representative Joyce Beatty of Ohio, who chairs our Diversity and 
Inclusion Subcommittee. The bill is cosponsored by Representatives   
Gregory Meeks, Al Green, Emanuel Cleaver,   David Scott, and Denny 
Heck.
  This bill would codify the Department of the Treasury's Mentor-
Protege Program, which is designed to encourage large banks to partner 
with smaller banks and minority depository institutions in enhancing 
their capabilities.
  These partnerships can be critical for MDIs, in particular, to have 
access to the capital and investments they need to better serve their 
communities. The Subcommittee on Consumer Protection and Financial 
Institutions, led by Chairman Meeks, held two hearings on the 
importance of minority depository institutions in October and November 
of 2019.
  We learned that MDIs face several challenges, including the ability 
to raise capital despite overall strong financial performance and 
challenges experienced as a result of serving communities that are 
often the first and the hardest hit in economic down cycles. This 
decline is contributing to growing banking deserts in minority 
communities.
  We discussed the decline of MDIs and how alarming the numbers are. 
Since the financial crisis, we have seen the numbers of MDI banks 
decline from 215 to 148; and today, we only have 18 Black-owned banks 
in this country. It is clear regulators have failed to fulfill their 
statutory obligations to preserve and promote MDIs and that Congress 
must act.
  In addition to Representative Beatty's bill, Representative Meeks has 
drafted a complementary bill, that is, H.R. 5322, the Ensuring 
Diversity in Community Banking Act, that will take additional steps to 
help MDIs. We hope this bill will move to the House floor very soon.
  We must do what we can to ensure all current MDIs and, hopefully, 
future MDIs have access to the investments and partnerships they need 
to thrive while serving the communities that need them the most. 
Encouraging more partnerships, as H.R. 5315 would provide for, is one 
important step we can take to ensure MDIs have the support and, 
eventually, the capital they need

[[Page H193]]

to continue their good work of serving their communities.
  Madam Speaker, I urge all Members to support this legislation, and I 
reserve the balance of my time.
  Mr. HILL of Arkansas. Madam Speaker, I yield myself such time as I 
may consume.
  I rise in support in H.R. 5315, the Expanding Opportunity for 
Minority Depository Institutions Act.
  Madam Speaker, I thank the gentlewoman from Ohio (Mrs. Beatty) for 
offering this bill and for working to keep important institutions 
having access to the capital they need to support the communities that 
rely on them.
  H.R. 5315 would codify the U.S. Treasury Department's Financial Agent 
Mentor-Protege Program into law.
  Minority-owned depository institutions play a vital role in our 
communities across America. The significant decline in the number of 
banks and credit unions since the financial crisis is concerning.
  MDIs have a substantial impact on consumers and communities, in 
particular, those small businesses and families that reside in low- and 
moderate-income census tracts that depend on services, often from MDIs 
in order to prosper.
  MDIs are essential to promoting and expanding greater access to 
financial services in low- and moderate-income communities. As the 
number of minority depository institutions continues to decline, 
Congress should act to preserve these vital institutions.
  In a hearing earlier this year, the Financial Services Committee 
heard directly from a number of MDIs that post-crisis regulations have 
taken a serious financial toll on their ability to compete and provide 
low-cost services, thus, making it harder for them to survive.
  In this instance, MDIs have that in common with many, many community 
bank organizations across the country. Compliance costs have risen 
since the crisis; and the smaller the institution, the higher the 
burden of those costs.
  So what better way to try to overcome that than to try to create a 
mentorship program to provide the talent and extra resources necessary 
to cope with raising capital, having expertise, developing human 
resources, and developing alternative compliance procedures that will 
allow MDIs to thrive?
  The Financial Agent Mentor-Protege Program has a proven track record 
of success in doing just this. Codifying the Financial Agent Mentor-
Protege Program into law signals Congress' intent to promote the 
program and increase mentor participation, potentially expanding the 
number of MDIs participating in the program.
  Committee Republicans support free-market solutions. The Financial 
Agent Mentor-Protege Program can encourage stronger partnerships 
between larger institutions and the financial sector with their 
minority depository institution partners, thereby benefiting more 
households and more consumers across our country.
  Madam Speaker, I would once again like to thank the gentlewoman from 
Ohio for her work on this bill and urge all my colleagues to support 
H.R. 5315.
  Madam Speaker, I reserve the balance of my time.
  Ms. WATERS. Madam Speaker, I yield such time as she may consume to 
the gentlewoman from Ohio (Mrs. Beatty), the chair of the Subcommittee 
on Diversity and Inclusion and the sponsor of this legislation.
  Mrs. BEATTY. Madam Speaker, first, let me start by thanking the chair 
of the Committee on Financial Services, Congresswoman Maxine Waters, 
for allowing me to bring this bill before the committee and for her 
support.
  Also, I thank the rest of the members on the Financial Services 
Committee for supporting this bill and moving the bill out of committee 
unanimously with a vote of 57-0.
  Madam Speaker, I also thank my colleague, Congressman Hill, for his 
words and his support on this very important piece of legislation.

                              {time}  1730

  My bill, the Expanding Opportunity for Minority Depository 
Institutions Act, H.R. 5315, would formally establish and codify the 
United States Department of Treasury's Financial Agent Mentor-Protege 
program into law. This mentorship program was established by the 
Treasury Department under the Office of Minority and Women Inclusion, 
otherwise known as OMWI, to facilitate the program.
  The relationship between minority-owned banking institutions and 
larger banks--which is very important and key to this piece of 
legislation--helps minority-owned banks improve their capacity to 
better serve their communities and their customers. At the same time it 
allows larger banks the opportunity to expand their network and 
facilitate potential subcontracting relationships with their proteges 
as well as receive credit under the Community Reinvestment Act.
  I am talking about a win-win, Madam Speaker, for everyone, especially 
the communities served by these minority-owned banks who have been hurt 
the most since the dramatic decline in the number of these institutions 
during the financial crisis of 2008, which has left many communities of 
color unbanked and underbanked.
  While there are no minority-owned banks in the State of Ohio where my 
district is, this bill could help change that calculus. I know because 
I remember when we had a minority-owned bank not far from my district 
in Dayton, Ohio.
  Madam Speaker, focusing on this important issue will allow Congress 
to stand up and get something done, especially for African Americans 
and other minorities who find themselves unbanked or underbanked. 
Congress needs to incentivize and formally establish programs such as 
this to turn around this downward trend because minority-owned banks 
have a history of making a difference in the communities.
  Let me just give you an example, Madam Speaker. Just a few years ago 
the FDIC surveyed my district, Columbus, Ohio, and reported that 25.2 
percent of those in that district were either unbanked or underbanked.
  Also, I wanted to be able to say that the Main Street financial 
institutions that provide mortgage and small business loans to 
communities are often unbanked and underbanked. Just ask African 
Americans right here in Washington, D.C., what it means to them.
  Finally, let me say, in fact, minority-owned banks originate a 
greater share of mortgages and Small Business Administration 7(a) loans 
to borrowers in low- and moderate-income areas than nonminority-owned 
banks. They also originate a greater share of loans to minorities in 
general than nonminority-owned banks.
  That is why, Madam Speaker, it is so important for Congress to pass 
this bill to formally establish the Treasury Department's mentor-
protege program so that minority-owned financial institutions can 
receive resources, as you have heard Congressman Hill say, and training 
and technical assistance, as Congresswoman Maxine Waters has mentioned, 
from larger financial institutions to better serve their community and 
their customers.
  Madam Speaker, I am asking my colleagues to support this opportunity 
for this program and for H.R. 5315 to become law.
  Mr. HILL of Arkansas. Madam Speaker, I yield myself such time as I 
may consume to close.
  Madam Speaker, again, I want to thank my friend from Ohio for her 
work on this bill, for calling attention to it and for suggesting that 
it is a great sense of partnership to have technical compliance and 
technical assistance that is available in so many of our larger 
institutions, those certainly $50 billion and up, and how they can help 
mentor a minority depository institution and try to create a better 
working environment for them to serve their communities and serve their 
households that are important in each of their towns and communities 
across this country.
  Madam Speaker, I urge my colleagues to support H.R. 5315, and I yield 
back the balance of my time.
  Ms. WATERS. Madam Speaker, I yield myself the balance of my time to 
close.
  Madam Speaker, we have a crisis with MDIs, and Congress must take 
action. H.R. 5315 codifies the Department of the Treasury's mentor-
protege program which is designed to encourage large firms to assist 
these small financial institutions, including MDIs, in enhancing their 
capability. The program has fostered the establishment of long-term 
business relationships between large banks and MDIs that can

[[Page H194]]

be critical for MDIs to have access to the kind of capital they need to 
better serve their communities.
  Madam Speaker, the Financial Services Committee approved the bill by 
a vote of 57-0, and the full House should also unanimously support this 
important legislation.
  I urge Members to support H.R. 5315, I urge my colleagues to join me 
in supporting this important piece of legislation, and I yield back the 
balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from California (Ms. Waters) that the House suspend the 
rules and pass the bill, H.R. 5315, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________