Push to build deposits at CDFIs, MDIs hits $1 billion milestone
Deputy Treasury Secretary Wally Adeyemo spoke Thursday about the possibility of standardizing term sheets for corporate deposits at community development financial institutions and minority depository institutions. The idea is to give corporations an established method of parking money at such financial institutions.
Victor J. Blue/Bloomberg
Several large banks and other companies and foundations have secured $1 billion of committed deposits for financial institutions that focus on underserved communities, but organizers say those efforts are still in their early stages.
The banks, which include Citigroup, Bank of America, Wells Fargo and KeyCorp, are part of a coalition formed last year to align private-sector investments in communities of color with related efforts by the Biden administration.
Last October, members of the Economic Opportunity Coalition pledged to move $1 billion of deposits to minority depository institutions and community development financial institutions. On Thursday, they announced that they had reached that goal.