“In developing these standards, the Agencies took into account individual entities' circumstances (for example, asset size of the entity, number of employees, governance structure, income, number of members and/or customers, contract volume, geographic location, and community characteristics),” said the Oct. 24 Board Action Memorandum.

In Thursday's board meeting, Matz said the examination process would not be used to assess diversity. Credit unions with at least 100 employees are required to report diversity self-assessments, which the NCUA will use to prepare an annual report for Congress.

Approximately 600 federally insured credit unions have more than 100 employees, the NCUA said.

“Expanding diversity is not only the right thing to do; it's good business,” Matz said. “We encourage credit unions to ensure their boards and staffs reflect their memberships.”

The standards include four categories: organizational commitment to diversity and inclusion; workforce profile and employment practices; procurement and business practices—supplier diversity; and, practices to promote transparency of organizational diversity and inclusion.

Among the standards is a requirement for the entity to take “proactive steps to promote a diverse pool of candidates, including women and minorities, in its hiring, recruiting, retention, and promotion, as well as in its selection of board members, senior management, and other senior leadership positions.”