State Street deposits funds in MDIs and CDFIs in September 2024
- State Street Corporation placed deposits through Leader Bank and Local Bank as part of a $100 million program.
- 75% of the funds have already been allocated to support underserved communities.
- The initiative aims to foster economic empowerment and advance racial equity.
On September 16, 2024, State Street Corporation announced a new round of deposits through two minority depository institutions (MDIs) and Community Development Financial Institutions (CDFIs), specifically Leader Bank in Massachusetts and Local Bank in Oklahoma. This initiative is part of a broader $100 million program aimed at providing low-cost, stable deposit funding to underserved communities, with 75% of the funds already placed. The program reflects State Street's commitment to fostering economic empowerment and advancing racial equity in the financial sector. Leader Bank, established in 2002, has grown significantly, now managing over $4 billion in assets. It actively partners with philanthropic organizations to support community initiatives. Local Bank, founded in 1907 by members of the Cherokee Nation, reinvests 95% of its deposits back into Cherokee County, emphasizing its dedication to local growth and prosperity. Both banks play crucial roles in their communities by supporting small businesses and promoting homeownership. State Street's CEO, Ron O'Hanley, expressed pride in collaborating with these institutions, highlighting their vital contributions to economic development. The firm aims to enhance the financial ecosystem that these MDIs and CDFIs serve, ultimately contributing to job creation and community growth. An event is scheduled for September 17, where State Street will gather the CEOs and executive leadership of the seven banks involved in the deposit program. This initiative is part of State Street's ongoing efforts to promote racial equity and support the communities it serves.