National Credit Union Administration (NCUA) officials are espousing the benefits of minority depository institution (MDI) credit unions, maintaining they represent an essential credit union system component.
NCUA Chairman Todd M. Harper said MDIs provide access to safe, fair, and affordable financial products and services within under-resourced communities.
“MDIs during 2022 showed us just how essential they are,” Harper said. ‘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.”
The NCUA’s recently released annual report to Congress indicated the organization supervised 503 MDI credit unions at the end of 2022, compared to 509 at the end of 2021 – adding the decline was largely due to mergers and credit unions no longer self-designating as MDIs.
According to the NCUA report, last year, MDI credit union served more than 5 million members, representing a rise from 4.5 million in 2021; had $42.2 billion in loans outstanding compared to $34.2 billion in 2021; and saw their total assets increase to $64.7 billion, up from $58.9 billion the prior year.
Per the NCUA, its MDI Preservation Program offered support to MDI credit unions through technical assistance, training, and access to Community Development Revolving Loan Fund grants and loans.
Chartering two new MDI credit unions in Kansas City, Missouri, and North Little Rock, Arkansas; launching the Small Credit Union and MDI Support Program; and approving field-of-membership expansions for 26 MDIs were among the 2022 NCUA MDI preservation efforts, officials noted.