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Treasury Bank Mentor-Protégé Program

Treasury Bank Mentor-Protégé Program

The Treasury Bank Mentor-Protégé Program (TBMPP) was established in 2018 by the Department of the Treasury, Bureau of the Fiscal Service to recognize and promote the important role played by minority-owned and women-owned banks, and small banks and financial institutions (FIs) in the nation’s economy and financial system.

The collective network of America's banks, large and small, is a national strength that is critical to making our economy work effectively. Many of the small banks and FIs play a vital role in promoting the economic viability of the communities they serve, and the Bureau of Fiscal Service. The need for safeguarding, transferring, lending, and exchanging money, and evaluating creditworthiness is a common denominator for small and large businesses, local communities, and our citizens.

The TBMPP provides a platform for large commercial financial institutions to partner with a protégé and provide management and/or technical assistance to help minority/women-owned banks and small FIs in low-income communities to strengthen their balance sheets and better serve their customers.

The Mission

To pair large banks with small and/or minority and women owned banks to cultivate a broader pool of FIs that have the ability, skills, and knowledge to provide services on behalf of Treasury and support the preservation of minority deposit institutions (MDIs) through encouragement of private sector business growth and development.

The Concept

The Treasury Bank Mentor Protégé Program was established to support the preservation of MDIs and expand the pool of financial institutions to serve as financial agents. The TBMPP can be implemented across any Fiscal Service financial agent business line and can be included as a requirement in a financial agent selection process (FASP) or as a stand-alone agreement between two financial institutions. In this light, the goal is to bring together large banks that serve as Financial Agents to Treasury or are industry leaders as mentors to create alliances with talented, capable small banks and FIs as protégés to:

  • be prepared to perform as a financial agent or to improve the capacity to provide services to customers of the small financial institution
  • expand the options available to Fiscal Service to execute programs and
  • to provide leadership and program development for small banks and FIs, including minority and women owned banks

Background

  • There are a small number of FIs who provide services to Fiscal Service as designated financial agents (FAs). Fiscal Service uses FAs to provide financial services focusing on revenue collection and payment transactions such as checks, wires, ACH, and payment cards. We also engage FAs to provide innovation, customer support, data management, analytics, and asset management. To ensure the U.S. Government manages finances and resources effectively, it is important to identify a full and capable pool of FAs from large and small banks as well as other financial institutions.
  • In August 1989, Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) was signed by the President and describes the goals for preserving minority deposit institutions. As of July 2020, there are over 5,000 financial institutions in the United States, however, only 149 are minority owned or controlled (according to the Federal Deposit Insurance Corporation website).
  • In Fiscal Year 2018, the Department of the Treasury, Bureau of the Fiscal Service established the Treasury Bank Mentor-Protégé Program to establish relationships between America's largest commercial banks as mentors and small and minority-owned banks as protégés. On December 5, 2019, H.R. 5315 (or the "Expanding Opportunity for Minority Depository Institutions Act"), was passed by the House of Representatives to amend FIRREA and call for the establishment of a Financial Agent Mentor-Protégé Program to codify the Treasury Bank Mentor-Protégé Program. Fiscal Service continues to monitor the status of this legislation and will make program, outreach and reporting changes as appropriate if this or similar legislation is enacted.

Guiding Principles

  • Voluntary Participation - Under TBMPP, mentor FAs voluntarily assist protégé FIs in growing their businesses and competing for FA opportunities. Protégés volunteer to participate in the program and are responsive to the mentor.
  • Inclusivity - Greater participation in FASPs by small FIs to expand the base of FIs that respond to solicitations or are included in responses to solicitations.
  • Initiate Proactive Efforts - To engage the small FI network through organizations such as the National Bankers Association, the Independent Community Bankers of America, the Minority Business Development Agency, Urban Financial Services Coalition, Operation HOPE, and the National Association of Women Business Owners, to establish relationships and platforms for regular information sharing.
  • Growth Promotion - Access to knowledge training leading to professional growth by partnering with mentors in the banking industry.

The Role of the Fiscal Service

The Fiscal Service will champion the TBMPP in several ways. Fiscal Service officials will:

  • facilitate meetings between prospective mentors and protégés,
  • communicate the basic tenets and principles of the program,
  • conduct outreach and education to small banks and FIs, including minority-owned and women-owned banks,
  • speak about the program to interested parties at various events,
  • encourage small banks and FIs to participate in the TBMPP.
Current Mentor-Protégé Participants
Mentor Protégé
US Bank First Independence Bank
JP Morgan Chase Harbor Bank of Maryland
Liberty Bank and Trust Co.
Citibank Industrial Bank
Unity National Bank
Citizens Trust Bank
Bank of Cherokee County
United Bank of Philadelphia
PNC INB, National Association
BNY Mellon Optus Bank

Last modified 05/18/21