Minority Depository Institution Credit Unions see year of growth
NCUA releases 2020 minority depository institutions annual report to congress
ALEXANDRIA, VA (June 24, 2021) — The National Credit Union Administration today issued its eighth annual report to Congress on the composition and financial performance of the minority depository institutions (MDI) supervised by the NCUA in 2020. Among the report’s highlights, the number of MDI credit unions grew in 2020, and these credit unions expanded membership and increased lending. Shares and deposits were up, as were total assets.
“Even though COVID-19 caused many trials for federally insured credit unions in 2020, minority depository institutions, as a whole, met these challenges head on and grew by meeting the needs of their members,” said NCUA Chairman Todd M. Harper. “MDIs serve an invaluable role in the nation’s system of cooperative credit, and the NCUA will continue to support the growth and sustainability of MDI credit unions so they can provide safe, equitable, and affordable financial services in financial deserts and to underserved communities.”
The 2020 Minority Depository Institutions Annual Report(opens new window) is submitted to Congress annually in accordance with Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) as amended by Section 367 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
A federally insured credit union can qualify as an MDI if 50 percent or more of its current members, eligible potential members, and board of directors are from one or a combination of the four minority groups defined in FIRREA: any Black American, Asian American, Hispanic American, or Native American.
MDI credit unions are often the only federally insured financial institution available in rural, urban, and underserved communities that have been historically unserved by traditional financial institutions.
At the end of 2020, the NCUA regulated 520 federally insured credit unions with the MDI designation, up from 514 at the end of 2019, located in 37 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. MDI credit unions served more than 4.3 million members, up from 3.9 million in 2019, and reported total assets of $51.1 billion, compared to $40.5 billion at the end of 2019.
Through the NCUA’s MDI Preservation Program, eligible MDI credit unions have access to grants and loans as well as technical assistance and guidance from their examiners and on-demand training at no charge.
In 2020, the NCUA’s MDI preservation efforts included:
- Approving field-of-membership expansions for 23 MDIs, allowing them to add 754 groups or geographic areas to their membership.
- Providing 48 low-income-designated MDI credit unions with approximately $460,000 in technical assistance grants and 18 MDI credit unions with approximately $103,000 in urgent need grants.
- Providing three MDI credit unions with $75,000 in grants under the agency’s mentoring program to help them obtain technical and other assistance from stronger, more experienced institutions.
- Introducing the MDI Mentoring Cohort, which provided technical assistance and training to mentoring grant recipients.
- Hosting a two-day MDI Forum for credit unions, which included several training and breakout sessions focused on the NCUA’s 2020 supervisory priorities, growth strategies, and the NCUA’s initiatives to support minority credit unions.
About National Credit Union Administration (NCUA)
The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 135 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.