As policymakers struggle with whether to increase deposit insurance at financial institutions—the FDIC outlined its own plan on Monday—credit union trade groups said they want banks and credit unions to be treated the same if changes are made, reports David Baumann of CUCollaborate.
The National Credit Union Administration’s Share Insurance Fund remains strong even though the agency’s equity ratio is below the normal rate set by the NCUA board, Eugene Schied, the agency’s CFO said during the February NCUA board meeting. Other issues were also discussed, reports David Baumann of the Washington Credit Union Daily.
Chip Filson compares the NCUSIF’s projected net operating loss against the actual data and discusses potential ramifications for the variance in these numbers.
The NCUA board agreed to a compromise budget that will return $15 million to credit unions next year and set the agency’s normal operating level at 1.33% for 2022, reports David Baumann of the Washington Credit Union Daily. The NCUA board also made decisions on final rules for the capital adequacy regulation and mortgage servicing rights.
The NCUA board agreed to solicit comments on a proposed rule that would amend the agency’s capital adequacy regulation governing credit unions with assets over $500 million, among other decisions at its July meeting, reports David Baumann of the Washington Credit Union Daily.
The National Credit Union Administration’s Share Insurance Fund’s equity ratio is expected to dip to 1.22% by the end of June, but the agency board decided Thursday not to require the development of a fund restoration plan, reports David Baumann of the Washington CU Daily. The Board also discussed its Normal Operating Level policy at its May meeting.
“When government gets more money, it wants to spend more,” warned Ed Callahan in 1984. Chip Filson calls on credit unions to hold NCUA’s feet to the fire when it comes to returning AME surpluses to credit unions.