U.S. Minority Depository Institutions at the Dawn of the Twenty-First Century

In the current era of intensified global migration and economic change, the simultaneous movement of people, money, services, and information alter the socioeconomic demographic makeup as well as the financial dynamics of countries. Building on our previous work on ethnic banking, this article examines the size, nature, and capacity of the new minority depository institutions (MDIs) in the United States. It identifies the reasons for the establishment of these new MDIs and their distribution in relation to immigration dynamics, and observes the role of social capital in their operation. It finds that contemporary financial dynamics pertaining to immigrants and minorities is rooted and localized in different ways and with different groups. Some MDIs are more globally connected or less locally embedded than others. Their utilization of social capital or ethnic assets also varies. In asserting that global financial situations and global money flows have significantly affected the emergence of MDIs, we suggest some policy interventions to facilitate the healthy growth of MDIs.