ALEXANDRIA, Va.–NCUA has issued today its annual report to Congress detailing the financial condition of minority credit unions in 2019 and the agency’s efforts to preserve and promote the formation of minority depository institutions.
The 2019 Annual Report to Congress on Preserving Minority Depository Institutions is available on the agency’s website.
NCUA noted a federally insured credit union can qualify as an MDI if 50% or more of its current members, eligible potential members, and board members are minorities. A “minority” is defined as any “Black American, Asian American, Hispanic American, or Native American,” as defined in Section 308 FIRREA Act.
The Numbers
MDI credit unions are often the only federally insured financial institution available in rural and urban communities that have been historically unserved by traditional financial institutions.
At the end of 2019, NCUA reported it regulated 514 federally insured credit unions with the MDI designation in 36 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. MDI credit unions served more than 3.9 million members and had assets of $40.5 billion. Approximately 10% of all federally insured credit unions are MDIs. The institutions are generally small — 57% of them have less than $10 million in assets, NCUA said.
“Through the NCUA’s MDI Preservation Program, MDI credit unions have access to grants and loans, training and technical assistance, and guidance from their examiners,” NCUA said in announcing the report.
Actions Taken
The agency reported during 2019 it:
- Chartered one new MDI credit union, Otoe-Missouria in Red Rock, Okla.
- Provided 58 low-income-designated MDI credit unions with $738,000 in technical assistance grants
- Provided three MDI credit unions with nearly $75,000 in grants under the agency’s mentoring program pilot
NCUA said for 2020 it has:
- Co-sponsored the Freedman’s Bank Forum with the U.S. Department of Treasury and other federal financial institution regulators on March 3
- Hosted a two-day MDI Forum on March 3–4
- Made $125,000 available to support MDI credit unions through our MDI mentoring program
Throughout the remainder of 2020, NCUA said it will continue its work to ensure the MDI Preservation Program is responsive to the specific needs and challenges of MDI credit unions, and will further continue its efforts to increase the program’s visibility and encourage new MDI credit unions.