Credit Union National Association (CUNA) sent a letter for the record ahead of the Subcommittee on Consumer Protection and Financial Institutions’ hearing titled, “An Examination of Regulators’ Efforts to Preserve and Promote Minority Depository Institutions.”
Minority depository institution (MDI) credit unions represent approximately 10% of all credit unions and serve an estimated 3.9 million members. CUNA estimates that 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.
CUNA supports the National Credit Union Administration’s (NCUA’s) MDI Preservation program, which was approved in 2015 and aims to encourage the preservation of these institutions through technical assistance, educational opportunities, grants, outreach and merger support.