Bank of America Stock Is Increasing Its Investments in Minority-Serving Financial Institutions by $100 Million.

Bank of America NYSE:BAC

Bank of America Stock (NYSE:BAC)

On Tuesday, Bank of America (NYSE:BAC) announced that it would increase its investments in minority-owned banks by depositing an extra $100 million into so-called Minority Depository Institutions (MDIs).

That’s twice what the bank had previously invested in MDIs, and it’s part of BofA’s $2 billion portfolio of loans, deposits, and investments in CDFIs and MDIs that was revealed last year.

Bank of America (NYSE:BAC) has invested $42.5 million in equity in 22 MDIs and CDFIs to broaden its racial equality programs. BofA has said it would purchase equity holdings in each lender amounting to less than 5%.

Bank of America chief administrative officer, Steve Boland, stated, “We are dedicated to exploring new methods to grow and broaden the reach of our capital to enable access to economic opportunities and assist different communities around the nation.”

On June 2, 2020, Bank of America pledged $1 billion to various economic inclusion programs.

The COVID-19 epidemic has exacerbated economic and racial inequalities. Bank of America (NYSE:BAC) has pledged $1 billion over four years to assist local communities in addressing these issues.

This renewed dedication strengthens Bank of America support for local markets’ economic mobility and workforce development initiatives.

Support for small companies, housing, and employment opportunities in the health care sector will be priorities.

The new pledge includes $100 million for nonprofit partners in its local areas and $250 million for community development finance and minority depository institutions to help them lend to small and minority-owned enterprises.

In light of the racial injustices we have seen in the areas where we live and work, a newfound feeling of urgency has developed in our country due to the events of the last week. CEO Brian Moyniham has said that “more needs to be done” by everyone.

Featured Image-  Unsplash @ rubaitulazad

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