What is the definition of a minority-owned institution?
In August 1989, Congress enacted the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”). Section 308 of FIRREA established the following goals: • Preserve the number of minority depository institutions; • Preserve the minority character in cases of merger or acquisition; • Provide technical assistance to prevent insolvency of institutions not now insolvent; • Promote and encourage creation of new minority depository institutions; and • Provide for training, technical assistance, and educational programs. Section 308 of FIRREA defines “minority depository institution” as any federally insured depository institution where 51 percent or more of the voting stock is owned by one or more “socially and economically disadvantaged individuals.
