Minority-Owned Financial Institutions: Status of Federal Efforts to Preserve Minority Ownership - Government Accountability Office (GAO) report

Minority-Owned Financial Institutions: Status of Federal Efforts to Preserve Minority Ownership - GAO Report

Date:	Nov. 3, 1993
Report No.:	GGD-94-1
Pages:	46
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Subjects: Financial institutions Interagency relations Lending institutions Minority business assistance Minority business set-asides Minority businesses Regulatory agencies RTC Minority Preference Resolution Program Bank failures Summary: GAO reviewed how four agencies--the Treasury Department, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, and the Resolution Trust Corporation--have implemented laws designed to preserve minority ownership of financial institutions and to assist minority-owned institutions and minority investors with acquiring failed institutions. Although the agencies have taken some steps to preserve minority ownership of financial institutions, they have not assessed whether these measures have been successful. GAO believes that periodic assessments of the effectiveness of the current approaches are essential given the goals of the legislation and the mixed views of the minority banking community on the agencies' efforts. In addition, until the agencies evaluate the effectiveness of their current approaches, they remain vulnerable to the perception that they have not done enough to preserve minority ownership of financial institutions.