Date: November 13, 2000 FOR IMMEDIATE RELEASE

Contacts: Rosie Cataldo Federal Reserve Bank 612-204-5261 Lue Thao Wilder Research Center 651-647-4626

Federal Reserve Bank of Minneapolis and Wilder Research Center to Survey St. Paul Hmong Population

Research to help bankers understand Hmong community

MINNEAPOLIS—The Federal Reserve Bank of Minneapolis, in conjunction with the Wilder Research Center in St. Paul, will conduct a survey of Twin City Hmong business owners and homeowners. The purpose of the survey is to understand how the Hmong community in Minneapolis and St. Paul have obtained credit and other financing for business and household uses. The results of the survey will be shared with bankers, financial institutions and others interested in methods of financing business and household needs in the Hmong community.

Beginning in November, members of the Wilder Research Center will personally visit nearly 150 Hmong business owners to learn about their start-up finances, among other issues. Also, 200 Hmong households will be surveyed in person to learn about their sources of credit and financing.

"This will tremendously help the Hmong community and financial institutions to better understand each other," said Touzeng Lor, business banking officer of University National Bank in St. Paul. "The Hmong community is like a nuclear family; they help each other to start up businesses. Some Hmong people have no business background and a financial institution may hesitate to finance them. I hope that this survey will help break that barrier."

Arthur J. Rolnick, director of Research at the Federal Reserve Bank of Minneapolis, said this survey builds on research begun at the Federal Reserve Bank of Chicago, where valuable insight was gained into the African-American and Hispanic communities. "The more we know about how people save, borrow and lend money, especially within a relatively new immigrant population, the better job we can do ensuring access to financial services," Rolnick said. "We have enjoyed working with members of the Hmong community, and we look forward to what we will learn from this project." Rolnick explained that the study will not result in immediate new programs or changes, but could have a big impact as more bankers develop a better understanding of the Hmong community.

As one of the 12 Federal Reserve Banks, the Federal Reserve Bank of Minneapolis contributes to a variety of Federal Reserve System functions, including operation of a nationwide payments system, distribution of the nation’s currency and coin, supervision and regulation of member banks and bank holding companies, and serving as a fiscal agent for the U.S. Treasury. Additionally, the president of Minneapolis Fed serves as a member of the Federal Open Market Committee, the monetary policymaking arm of the Federal Reserve’s Board of Governors. Together with its branch in Helena, Mont., the Minneapolis Fed serves the Ninth Federal Reserve District, which includes Minnesota, Montana, North and South Dakota, 26 counties in northwestern Wisconsin and the Upper Peninsula of Michigan.

Wilder Research Center is a part of the Wilder Foundation, which has worked with several Hmong organizations, such as the Lao Family Community and Hmong American Partnership.

-30-