ARLINGTON, Va.—In light of the uncertainty surrounding the spread of the coronavirus and rapidly changing developments, NAFCU President and CEO Dan Berger sent an update to member credit unions in which he outlined recent developments and responses from Congress, the Federal Reserve, NCUA and other regulators.
On the legislative front, Berger noted the coronavirus response "is expected to dominate the congressional agenda in upcoming months and push many issues to the side," highlighting that "Congress passed an emergency funding measure to fight the virus as a first step" and continues to work on a bipartisan emergency bill.
Berger encouraged credit unions to email any updates to advocacy@nafcu.org to share the steps credit unions are taking to help their members and any updates on how their institution is being impacted.
"The NAFCU lobbying team is remaining engaged with contacts on the Hill on the impact that the virus is having on the credit union industry and providing perspective on any measures that may impact credit unions," wrote Berger.
Further Measures
Following the Federal Reserve's emergency rate cut setting the federal funds target rate to a range of 0 to 0.25% and announcement of a potential $700-billion stimulus package, Berger also discussed further measures taken by the Fed.
"Given the qualifications the Fed articulated about when the fed funds rate might move back above zero (on track to achieve max employment and price stability), credit unions should expect this rate environment to persist for most of this year," he wrote.
Berger also outlined important regulatory developments, including the Small Business Administration's efforts to provide relief for business affected by the outbreak, resources from the Federal Financial Institutions Examination Council, and the NCUA and CFPB's recent joint statement.