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Abstract: 

In Minority Banks: Regulators Need to Better Assess Effectiveness of Support Efforts (“Minority Banks Report”), the Government Accountability Office found that many small minority banks and African- American banks of all sizes were less profitable than similarly sized banks. Minority banks with assets above $100 million, about 40% of all minority banks, nearly equaled the profitability of all similarly sized banks, but this was not true of African-American banks, which account for about half of all minority banks. The FDIC, OTS, OCC, and Federal Reserve regularly assess their minority bank support efforts, including getting feedback from the serviced banks. The agencies should also develop outcome-oriented performance measures to assess the progress of their efforts.

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