Qualifying as a Minority Depository Institution
The National Credit Union Administration defines “minority depository institution” as a federally insured credit union in which a majority of its current members, its board of directors, and the community it services, as designated in its charter, fall within any of the eligible minority groups described in Section 308 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989: Asian American (including Native Hawaiian or Pacific Islander), Black American, Hispanic American, and Native American (including American Indian or Alaska Native).
- Majority-Minority Membership: A majority (greater than 50 percent) of the credit union’s current members are from any of the eligible minority groups.
- Majority-Minority Board: A majority (greater than 50 percent) of the credit union’s board of directors are from any of the eligible minority groups.
- Majority-Minority Community Served: A majority (greater than 50 percent) of the community the credit union serves, as designated in its field of membership, are from any of the eligible minority groups.
Designating as a Minority Depository Institution
The NCUA has a two-step self-designation process for eligible MDI credit unions:
- Determine if your credit union meets the requirements for the designation.
- Answer the Minority Depository Institution questions on the CUOnline Profile.
The NCUA encourages credit unions to determine whether they qualify to be an MDI. See the Minority Depository Institution Preservation Program Interpretive Ruling and Policy Statement IRPS 13-1 for details.
How do MDI Credit Unions Serve Members?
MDI credit unions, as a group, work to offer safe, fair, and affordable financial services to individuals and communities who may otherwise lack access to them. In doing so, MDI credit unions help their members build greater financial security. They create more economic opportunities. They help address historical inequities in the financial system.
More than one in 10 federally insured credit unions has the MDI designation. These credit unions are located in 35 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. They serve more than 6.5 million members and hold aggregate assets of more than $88 billion.
Benefits of the Minority Depository Institution Designation
The NCUA provides specific kinds of support for MDI credit unions, including:
- Small Credit Union and MDI Support Program: Technical assistance is available upon request through this program. An MDI should make its request through its assigned NCUA regional office, supervisory examiner, or district examiner.
- Learning Management System: The NCUA’s online educational service offers materials tailored to MDIs’ specific needs, at no cost. Users are required to create LMS accounts to access these resources.
- Chartering Assistance: The NCUA can help groups seeking to start new federally chartered credit unions, including MDIs, with the chartering process.
- Grants and Loans: MDIs that also hold low-income designations are eligible for access to financial assistance through grants and loans, including mentoring grants, from the Community Development Revolving Loan Fund.
Information Contacts
If you have questions about the MDI designation, please contact the NCUA’s Office of Credit Union Resources and Expansion at 703.518.6510 or curemdi@ncua.gov.