The National Bankers Association Foundation (Foundation), the 501(c)(3) nonprofit arm of the National Bankers Association, releases a new report, “Minority Depository Institutions: State of Knowledge, Sector Summary, Lending Activity, and Impact, 2010 – 2022” - co-written by Anthony Barr, National Bankers Association Foundation, and Mac McComas, Senior Program Manager and researcher at John Hopkins University’s 21 Century Cities Initiative.
The report examines the state of the nation’s 147 Minority Depository Institutions (MDIs), which are mission-driven banks that provide access to credit for marginalized communities, explores how the MDI industry has changed since 2010, identifies their lending geography and coverage, discusses their potential impact, and highlights the current state of knowledge on MDIs.The report also draws from a special partnership with Moody’s Analytics and Moody’s RMS to provide forecasted economic and climate data tied to places that received lending from our representative sample of 10 MDIs.
Topline findings from our analysis of the overall MDI sector include the following:·
Most MDI branches (62%) are located in zip codes with poverty rates higher than the national average, compared to just 38% of non-MDI branches.·
25% of MDI branches are located in zip codes, in which the MDI is the only bank with physical presence in that zip code. This means that MDIs are the only bank branch in 174 zip codes that are home to 3.5 million people.·
The 10 banks in our lending sample deployed 3.38 billion dollars in more than 6,000 zip codes in 2021, including more than 20,000 Paycheck Protection Program loans to support small businesses amid the pandemic.
Places that received lending dollars from our sample have higher rates of recorded and forecasted rates of unemployment and bankruptcy and greater risk from climate change compared to the nation as a whole.
Acknowledgments: John Hopkins University (especially the 21st Century Cities Initiative and undergraduate interns Ted Murren and Sam Oberly), Rutgers University (especially Amine Ouazad), Moody’s Analytics and Moody’s RMS (especially Gregory Robinson and Jordan Byk), UpMetrics (especially Kyle Lukianuk, Eric Fabre, and Remy Garderet), VISA, Wells Fargo Foundation, and JPMorgan Chase.