NCUA BOARD COMMENDED FOR VIGILANCE ON CREDIT UNION INSURANCE FUND

NCUA BOARD COMMENDED FOR VIGILANCE ON CREDIT UNION INSURANCE FUND

State system ‘intrigued’ by possible congressional action to bolster fund investments

 

Feb. 18, 2021

Contact: Lucy Ito, NASCUS President and CEO; (703) 528-8351

In the wake of the NCUA Board’s Thursday meeting, NASCUS President and CEO Lucy Ito commended NCUA Chairman Todd Harper, Vice Chairman Kyle Hauptman and Member Rodney Hood for their attentiveness to the insurance fund equity ratio.

“The root cause for the downward pressure on the NCUSIF’s equity ratio has clearly been a dramatic and likely continuing increase in insured shares related to economic stimulus payments, and not unsafe or unsound operating practices by credit unions,” Ito said. “Harper, Hauptman and Hood are commended for their vigilance and caution in monitoring the equity ratio, and the impact on credit unions.”

She also said the state system is interested in possible congressional action to bolster the insurance fund’s investments.

“NASCUS is intrigued by the suggestion of possible congressional action to expand the investment authority of the insurance fund that would maximize yield while assuring the protection of the fund. The state system will be studying the statutorily permissible investments by the NCUSIF compared to the FDIC to inform potential legislation.

Finally, Ito commended Chairman Harper for considering state laws and rules in the agency’s deliberations over the final rule on joint ownership share accounts. NASCUS had supported the proposal, noting it acknowledges that account opening practices have evolved substantially over the last nearly 50 years.

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NASCUS is the national association that advocates for a strong and healthy state credit union system, and whose members include state regulatory agencies, credit unions, credit union leagues, and organizations that support the state credit union system.