The Mission Driven Bank Fund (MDBF) has achieved a significant milestone by announcing a second close that elevates its total capital to over $177 million, a move that underscores the banking industry's commitment to supporting minority-owned and community development banks. This development is pivotal in the ongoing efforts to bridge the racial wealth gap and promote a more inclusive banking system across the United States.
With an additional $65 million raised in this round, the fund has attracted new limited partners, including banks with assets ranging from $6 billion to over $150 billion. Notable participants such as Lake City Bank, Enterprise Bank & Trust, Hancock Whitney Bank, and Banner Bank have joined the initiative, reinforcing the collective effort to bolster FDIC-insured Minority Depository Institutions (MDIs) and Community Development Financial Institution (CDFI) banks.
John M. Hairston, president and CEO of Hancock Whitney, highlighted the alignment of this investment with their institutional values, emphasizing the role of such initiatives in supporting economic growth and enhancing the quality of life in communities. The MDBF's targeted approach aims to empower African American, Native American, Asian, Hispanic, and Pacific Islander communities by strengthening the financial institutions that serve them.
Rickey Jimenez of Enterprise Bank & Trust pointed out the unique position of the MDBF in the impact investing ecosystem, noting its potential to address lending gaps faced by individuals and small businesses. Paul Welch, the Mission Driven Bank Fund portfolio manager, expressed optimism about the fund's progress and its ability to create customized solutions for mission-aligned banks.
Beyond financial investment, the MDBF provides technical services to enhance the operational capabilities of these banks, aiming for tangible progress in reducing the racial wealth gap. With plans for additional closings through May 2025, the fund's impact is expected to grow, reflecting a broader industry recognition of the need to support community-focused banking initiatives.
For more details on the Fund's initial investors and portfolio, visit https://missiondrivenbankfund.org. The expansion of the MDBF marks a crucial step toward a more equitable financial system that actively works to close the racial wealth gap in the United States.
