NCUA’s MDI program well-placed to support MDI credit unions
NCUA’s Minority Depository Institution (MDI) Preservation Program is well-placed to support MDI credit unions’ resiliency and bolster the chances minority and underserved communities have access to financial opportunities, CUNA wrote Wednesday. CUNA sent its letter to a House Financial Services subcommittee hearing on MDIs.
“MDI credit unions represent an important way in which credit unions are fulfilling their mission by advancing financial inclusion and well-being for minority and underserved communities,” the letter reads. “Today, MDI credit unions represent approximately 10% of all credit unions and serve approximately 3.9 million members (representing 3% of all credit union members).”
It goes on to note that CUNA estimates that MDI credit unions represent approximately 10% of all credit unions and serve approximately 3.9 million memberships (representing 3% of all credit union memberships).
“During the twelve months ending June 30, 2019 MDI credit unions provided approximately $337 million in direct financial benefits to their members as a result of lower rates on loans, lower fees, and higher rates on deposits compared to banks,” the letter reads. “These benefits are equivalent to $88 per member or $186 per member household. While significant, these figures underestimate the benefits MDI credit unions provide their members through financial access as well as tailored products and services designed to better serve their financial needs.”
NCUA’s MDI Preservation Program, which was approved in 2015, aims to encourage the preservation of MDI credit unions via technical assistance, educational opportunities, grants, outreach to understand the particular challenges MDI credit unions face and provide MDIs considering mergers support in identifying appropriate merger partners.
“This program represents a valuable resource for MDI credit unions because it offers an opportunity to bolster their sustainability,” CUNA’s letter reads.