SEATTLE—NCUA Chairman Rick Metsger said he wants to see at least 200 more credit unions achieve community development financial institution (CDFI) status by year-end.
In remarks to CUNA’s America’s Credit Union Conference (ACUC) here, Metsger said NCUA has been working closely with the Treasury to streamline the application process to help expand the number of credit unions with CDFI certification.
“Today I want to say that this is very critical (to credit unions) and I am asking you to participate,” said Metsger. “This will help you apply for grants that provide you with the capital to serve the underserved, which is the core of the credit union mission.
“We want to make it easier for you to apply for the CDFI certification,” added Metsger, explaining that NCUA, too, is dedicating seven staff members to help CUs complete the application process.
Metsger noted that the Treasury dedicates its grant money for community development based on the participation levels of the FIs within and industry. He said currently just 25% of the CDFI dollars go to credit unions and that by adding 200 more CDFI credit unions the movement could claim 50% of the Treasury’s dollars that are available.
“This is a great way to reach out our communities and show the credit union difference,” said Metsger. “I encourage you to contact the NCUA to be part of this process and increase our presence within the communities we serve.”
Separately, Metsger also addressed the economic uncertainty that has resulted from U.K.’s exit from the European Union. Acknowledging that what may eventually result from the U.K. move in the U.S. is still uncertain, Metsger said the good news is the financial system, especially credit unions, are well-capitalized for risk.
“While markets are repricing, there is plenty of capital in play,” said Metsger, adding that the financial system in the U.S. is sound. “And this is a far cry from what we saw in 2008.”
But Metsger acknowledged that it is difficult to predict the impact on small business, which is a concern for credit union lending.
“Will this be a blip on their radar screen or lead to apprehension among business,” said Metsger. “We don’t know. Will businesses be concerned and say no to taking out that next loan? . . . But at NCUA our job is to make sure the system is ready to address things we don’t anticipate, like what saw Friday.”