America’s Mutual Banks Calls for Capitalizing and Chartering Mission Driven De Novo Mutual Banks

/EIN News/ -- WASHINGTON, Feb. 23, 2021 (GLOBE NEWSWIRE) --

AMB Chairman Tom Fraser called on the private sector to step up its efforts to support mission ‎driven financial institutions. He stated, “Current banking laws, authorizing the chartering of FDIC ‎insured mutual banks, offer the ideal legal structure to fund initiatives to serve minority and rural ‎communities with traditional banking services not otherwise available to them.” Nonetheless, no ‎new mutual bank has been insured by the FDIC in half a century He pointed out that in order for ‎mission driven banks to be successful they must not only serve the community but be operated ‎for the good of the community and by the community without the need to set aside profits for ‎private gain. He praised the mutual banking model as the right structure to facilitate investment ‎in underserved communities. “No one can buy or sell a mutual bank which is one important ‎reason for their longevity.” He extolled the 200 year history of mutual banks which were ‎originally created to serve constituencies that were unserved by commercial banks. On behalf of ‎AMB he urged the banking agencies, both federal and state, to revive mutual bank charter ‎formation by working with community, institutions and philanthropic investor groups to make ‎this option available to minority and rural constituencies.‎

Contact:
Douglas Faucette
Locke Lord LLP
T: 202-220-6961
dfaucette@lockelord.com