Assets held by community development financial institutions tripled in the last five years, reaching at least $452 billion in the first quarter of 2023, according to a new report by the Federal Reserve Bank of New York. Of that figure, credit unions hold about $300 billion (66%), banks hold $118 billion (27%) and loan funds hold $35 billion (8%). Banks were the largest individual CDFIs of the three, with a median asset size of around $335 million.
The number of certified CDFIs increased from 1,066 to 1,487 institutions in the time period reviewed, driven primarily by newly certified CDFI credit unions, according to the report. The number of credit unions almost doubled, from 290 to 529, while the number of banks increased from 124 to 198. Still, loan funds make up the largest share of certified CDFIs by count at nearly 600. The remainder of CDFIs are financial institutions that didn’t fit into the three categories, such as holding companies and venture capital firms.