The National Credit Union Administration (NCUA) has celebrated the strong performance by Minority Depository Institution (MDI) credit unions, which have increased access to financial services in rural, urban, and under-resourced communities by 11% in 12 months.
A federally insured credit union can qualify as an MDI if more than 50% of its current members, the community it services, and its board of directors are from one or a combination of the four minority categories defined in federal law: any Black American, Asian American, Hispanic American, or Native American.
The NCUA released its Annual MDI report to Congress in early July, which found MDI credit unions served more than 5 million members in 2022, up from 4.5 million in 2021, and had $42.2 billion in loans outstanding compared to $34.2 billion in 2021. This included $15.7 billion in first-mortgage real estate and $14.7 billion in vehicle loans.
The report also found MDI credit unions saw their total assets increase to $64.7 billion, up from $58.9 billion the year before.
Minority depository institutions predominantly serve under-resourced communities and provide access to safe, fair, and affordable financial products and services.
Todd M. Harper, NCUA chairman, said: “They are an essential component of the credit union system. Not only did they give millions of Americans the chance to build better and more secure financial futures, their performance metrics in several categories were stronger than the credit union system overall.”
In an effort to preserve MDI credit unions, the NCUA launched the Small Credit Union and MDI Support Program in 2022, which focused resources on the needs of these organisations. The NCUA dedicated 1,534 staff hours per region to the program, which will increase to 1,833 in 2023.