MINNEAPOLIS, Minn.–NCUA Chairman Todd Harper told the agency’s fifth annual Diversity, Equity and Inclusion Summit here that as the economic divide expands, DEI has never been more important and that credit unions have a critical role to play.
Harper’s comments came via video as he continues to recover from back surgery.
Citing to the recent July 4 holiday, Harper told the meeting that in a democracy “everyone has a part to play in achieving that goal, including—and especially—credit unions.”
When it comes to the role of cooperative credit in promoting democracy, Harper quoted former First Lady Eleanor Roosevelt, who in 1948 said, “[A] society in which there is widespread economic insecurity can turn freedom into a barren and vapid right.”
A Message That ‘Resonates’
Harper said the observation continues to “resonate today” as the middle class in the U.S. has shrunk considerably over the past 50 years. While the percentage of lower income households has increased, as has the wage gap with upper-income households.
“As a result, the people pushed down the rungs of the economic ladder — regardless of their demographic status — are worse off and, as a whole, often discouraged about their circumstances,” Harper said. “That resentment, in turn, has manifested itself in our present political discourse. There’s an undeniable tone of frustration in our national conversation that has led to distrust and propagated an ‘us versus them’ mentality. Further, that sentiment has threatened the likelihood of finding common ground and adopting policies that lift up all Americans. That result should cause us all to pause and think about what we need to do differently going forward.”
A ‘Real Difference’
It's in that environment where Harper said “credit unions can make a real difference.”
“Credit unions, in fact, have both a statutory responsibility and a moral obligation to facilitate the economic mobility needed for effective democratic governance,” the chairman told the meeting. “By following their statutory mandate of meeting the credit and savings needs of their members, especially those of modest means, credit unions can establish a firmer foundation on which financial stability for a growing middle class and a stronger national union can be built for future generations. And, in achieving that important mission, credit unions will help all Americans, regardless of the color of their skin, sex, age, religion, disability, or orientation, climb the economic ladder and strengthen our democracy.”
The Agency and DEI
In his remarks, Harper said when it comes to DEI:
- NCUA is fulfilling its statutory mandates to build a stronger economy and advance diversity, equity, and inclusion, with its Office of Minority and Women Inclusion and our Minority Depository Institution Preservation Program, among other initiatives.
- NCUA has customized examinations for minority depository institution credit unions.
- Has “increased industry transparency, accountability, and market awareness by requiring federally insured credit unions with more than $1 billion in assets to disclose, separately, on call reports the income received from overdraft and non-sufficient funds fees.”
- Said the “misrepresentation of what DEI is, and what it is not, has persisted. And, what DEI is not, is elevating one person or group at the expense of degrading another. Which begs the question, what more can we do to educate and convince those who misunderstand DEI’s purpose? One way is to persuade them of both the depth of DEI’s impact and the breadth of its influence. The business case for diversity, equity, and inclusion is well-known by now. It improves an organization’s performance, reputation, and bottom line. It also boosts employee recruitment, productivity, innovation, engagement, and retention.”