While the number of minority depository institutions (MDIs) and community development financial institutions (CDFIs) is relatively small compared with the total number of insured institutions, MDIs and CDFIs play an important role in providing financial services to the communities they seek to serve. This study describes MDIs and FDIC-insured CDFIs and how the structure of this segment of the financial services industry has changed over time. The study also compares the performance of MDIs with other insured institutions.
Although MDIs tend to underperform non-MDI institutions in terms of standard industry financial performance measures, the study finds that MDI offices tend to be located in communities with higher shares of minority populations. In addition, MDIs were found to originate a greater share of their mortgages to borrowers living in low- and moderate-income census tracts and to minority borrowers compared with other financial institutions. These findings demonstrate a high level of commitment on the part of MDIs to the populations they seek to serve and the essential role they play in their local communities.
Last Updated: November 20, 2025