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The
program doubles Bank of America's earlier pledge to invest in
minority depository institutions, or MDIs, that are mostly owned
by minority individuals. The second-biggest U.S. lender has
expanded its racial equality initiatives in recent years, making
$42.5 million in equity investments in 22 MDIs and Community
Development Financial Institutions. For the smaller lenders, the
influx of deposits "expands their capacity to make loans," D.
Steve Boland, Bank of America's chief administrative officer,
said in an interview. "What we would hope is our example draws
in others" to make similar moves, he said.
The deposits will probably range from $1 million to $10 million,
Boland said. Optus Bank, Southern Bancorp and City First Bank
are among the lenders that will receive deposits.
"MDIs are a critical resource to minority and underserved
communities," providing banking services, creating jobs and
helping businesses, Boland said separately in a statement.
(Reporting by Lananh Nguyen; Editing by Muralikumar Anantharaman)
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