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National Bankers Association Foundation Releases Report on Minority Banks' Credit Access for Margin


WASHINGTON, D.C. - The National Bankers Association Foundation (Foundation), the nonprofit arm of the National Bankers Association, has unveiled a comprehensive report titled "Minority Depository Institutions: State of Knowledge, Sector Summary, Lending Activity, and Impact, 2010 – 2022." Co-authored by Anthony Barr from the National Bankers Association Foundation and Mac McComas, a Senior Program Manager and researcher at John Hopkins University's 21st Century Cities Initiative, the report delves into the state of the nation's 147 Minority Depository Institutions (MDIs). These mission-driven banks play a crucial role in providing credit access to marginalized communities. The study explores the evolution of the MDI industry since 2010, maps their lending geography and coverage, examines their potential impact, and sheds light on the current understanding of MDIs.


Notably, the report leverages a special collaboration with Moody's Analytics and Moody's RMS to incorporate forecasted economic and climate data for locations that received loans from a representative sample of 10 MDIs.


Among the key findings drawn from the analysis of the overall MDI sector are:

  1. Majority of MDI branches (62%) are situated in zip codes with poverty rates exceeding the national average, in contrast to only 38% of non-MDI branches.

  2. 25% of MDI branches are the sole banking presence within their respective zip codes, accounting for 174 zip codes and serving a population of 3.5 million individuals.

  3. The 10 banks sampled for lending activity deployed over $3.38 billion across more than 6,000 zip codes in 2021. This included the distribution of over 20,000 Paycheck Protection Program loans to aid small businesses during the pandemic. The areas receiving funding from this sample displayed higher rates of recorded and projected unemployment, bankruptcy, and climate change vulnerability compared to the national average.

Read the full report here.


The Foundation extends its gratitude to several entities for their contributions to this research, including John Hopkins University, specifically the 21st Century Cities Initiative and undergraduate interns Ted Murren and Sam Oberly; Rutgers University, particularly Amine Ouazad; Moody's Analytics and Moody's RMS, with special recognition to Gregory Robinson and Jordan Byk; UpMetrics, especially Kyle Lukianuk, Eric Fabre, and Remy Garderet; VISA; Wells Fargo Foundation; and JPMorgan Chase.

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