Promoting New and Diverse Depository Institutions Act

Promoting New and Diverse Depository Institutions Act

This bill requires federal banking agencies to study and report on the challenges faced by entities attempting to become chartered depository institutions and to develop a strategic plan to assist in the application process. The strategic plan must (1) promote the chartering of minority depository institutions and entities that could be certified as community development financial institutions, and (2) describe actions to increase the number of depository institutions located in underserved areas.

Bill 118 s 2252, also known as the Promoting New and Diverse Depository Institutions Act, aims to promote the establishment and growth of new and diverse depository institutions in the United States. The bill seeks to address the lack of diversity in the banking industry by providing support and resources to minority-owned and women-owned depository institutions.

The key provisions of the bill include creating a grant program to provide funding for new depository institutions that are owned by minorities or women. These grants would help cover start-up costs and operational expenses, making it easier for these institutions to enter the market and compete with larger, more established banks.

Additionally, the bill includes measures to increase access to capital for minority-owned and women-owned depository institutions, such as providing low-interest loans and technical assistance. This would help these institutions grow and expand their services to underserved communities. Overall, the Promoting New and Diverse Depository Institutions Act aims to promote diversity and inclusion in the banking industry, while also increasing access to financial services for underserved communities. By providing support and resources to minority-owned and women-owned depository institutions, the bill seeks to create a more equitable and inclusive financial system in the United States.