NCUA Self-Assessment: Minorities Making Gains in Small Sample of CUs
Results from NCUA diversity self-assessment show gains for minorities, however the number of credit unions responding was too low to reveal broader trends.
Agency says number of credit unions responding to survey increases, but overall numbers remain too low to represent entire industry.
Credit unions responding to the NCUA’s Credit Union Diversity Self-Assessment increased minority representation in their workforce in 2021, the agency revealed Tuesday.
Those credit unions that provided the NCUA with workforce data in 2021 reported that:
–60.3% of all employees were White, a decrease of 4 percentage points from 2020, and 70.3% of management employees were White, also a 4-percentage point drop.
–Latinos comprised 20% of all employees, while Black Americans made up 10% of employees.
–Women accounted for 51.4% of credit union managers and CEOs. However, women managers and CEOs outnumbered men only in credit unions with less than $100 million in assets.
–15% of board members were Black and 7.6% were Latino.
Low Participation Rate
However, as in past years, few institutions completed the self-assessment, with only 240—or 4.8% of all credit unions—responding to the 2021 survey. Still, even that figure represents a 28.3% increase from 2020, when just 187 credit unions took part.
The agency warned that, because of the small number of credit unions reporting, the results should not be considered as representative of the industry as a whole.
NCUA Focus on DEI
In releasing the report, NCUA Chairman Todd Harper emphasized the need to set diversity, equity, and inclusion as a strategic objective.
“We have, across the system, seen improvements in DEI prioritization and performance in recent years, but we must strive to continue that progress,” Harper said. “The CUDSA is a positive way for credit unions to embrace DEI principles. The 2021 assessment results provide credit unions with valuable information to measure and better manage their DEI progress.”
The NCUA is also sponsoring a three-day DEI and ACCESS Summit this week.
Regarding the survey results, the NCUA further reported that:
–About 61% of those responding said they had a leadership and organizational commitment to diversity.
–56% said they had taken steps to implement employment practices demonstrating that commitment.
–31% said they monitored and assessed their diversity practices.
–11% reported having a supplier diversity program in 2021, with the NCUA noting supplier diversity inclusion practices remained an area in need of improvement.
–79% reported they were taking steps to include a diverse pool of candidates when hiring, while 73% said they were making similar efforts in the selection of board members.
–68% of the reporting credit unions said they had a senior-level official overseeing their DEI efforts.
The 2022 Survey
The NCUA emphasized that the survey is voluntary and is not part of the examination process. It has no impact on a credit union’s CAMELS rating.
Agency officials also announced that the survey is accessible to individual credit unions through a custom link issued by the NCUA. The reporting period for 2022 has been narrowed to a four-month window, which began on Oct. 1, and closes on Jan. 31 of next year.