ALEXANDRIA, Va. (11/18/13)--The 805 credit unions that met minority depository institution criteria as of June 30 held $36.9 billion in assets, and are owned by 4.8 million members, the National Credit Union Administration said in its Minority Depository Institutions (MDI) Congressional Report.
The minority credit unions represent 12% of all federally insured credit unions, and hold 3.5% of the total assets in all federally insured credit unions.
Overall, minority depository institutions are financially sound, the NCUA report revealed. Most MDI credit unions have satisfactory CAMEL composite ratings and at least adequate net worth ratios, the NCUA said. On average, their net worth is 11.1%. Nearly all (95%) of minority depository institutions are well-capitalized, with net worth ratios of 7% or more.
Just over 80% of minority depository institutions hold $50 million or less in assets, and 8% hold $50 million to $100 million in assets. Another 8% hold $100 million to $500 million in assets. Due to the minority depository institutions' small asset sizes, most are challenged by the lack of sufficient resources, which demonstrates their need for technical assistance, the NCUA said.
The NCUA has developed a proposed MDI Preservation Program, under which credit unions with high percentages (50% and above) of minority members and management would be eligible to receive minority credit union status from the agency. This status would grant them access to NCUA Office of Small Credit Union Initiatives resources, including grant program eligibility. The NCUA is currently reviewing credit union comments on the proposal.
For the full NCUA report, use the resource link.