As part of its commitment to racial equity, the Commission has updated its internal Investment Policy to provide that a significant portion of its own funds are deposited in minority-owned depository institutions (MDIs).
MDIs are defined by the FDIC as institutions where (1) 51% or more of the voting stock is owned by minority individuals, or (2) a majority of the board of directors is minority and the community that the institution serves is predominantly minority. Ownership must be by U.S. citizens or permanent legal U.S. residents to be counted in determining minority ownership. The term “minority” is defined as any “Black American, Asian American, Hispanic American or Native American.”
Under the new policy, Commission funds are deposited in U.S. financial institutions where they are either FDIC insured, regulated by the Office of the Controller of Currency or the Federal Reserve, or collateralized in accordance with guidance issued by the NC Department of State Treasurer. This ensures that the funds are protected at all times. The policy sets out target goals for the Commission’s funds, including certain North Carolina institutions and MDIs. The target range for MDIs is 20 – 40 %. In other words, the Commission seeks to keep between 20 and 40% of its funds in minority-owned institutions at all times, with a preference for institutions in North Carolina or the Southeast region.