ALEXANDRIA, Va.–Here is how NAFCU and CUNA are responding to the several items voted on at the July 23 NCUA board meeting, at which the fixed asset rule, agency budget and performance of the Temporary Corporate Credit Union Stabilization Fund were all discussed.
"NAFCU strongly supports this final rule (removing the 5% fixed asset cap), and we appreciate the NCUA Board's leadership acting on this much-needed piece of regulatory relief," said NAFCU CEO Dan Berger. "Federal credit unions deserve the flexibility to manage their investment in fixed assets independently, and we applaud NCUA for amending its regulations to allow such flexibility while still maintaining a safe and sound system."
"In terms of the agency's midyear budget review, NAFCU continues to urge NCUA to ensure it is making the very best of the dollars credit unions pay - dollars credit unions otherwise would be using to strengthen operations and meet the needs of their members. Credit unions are obligated by law to provide these monies, but that does not preclude NCUA from its responsibility to operate in an efficient manner - or to be open about the manner in which the funds provided by credit unions are utilized.”
"With regard to the agency's TCCUSF quarterly report, NAFCU and our members are pleased with the stabilization fund's solid performance, that NCUA anticipates no stabilization assessment this year and that there is growing likelihood of a refund to credit unions at some point in the future."
CUNA CEO Jim Nussle issued a statement that “We’re pleased the NCUA board listened to CUNA and credit unions by removing the 5% fixed assets threshold. CUNA has long advocated for this change which will allow credit unions more flexibility in deploying resources to benefit their members. However, we will not have a complete picture of the true regulatory relief until NCUA provides credit unions with guidance.
“It is also good news for credit unions that the NCUA confirmed today what CUNA has long been saying: there will be no stabilization fund assessment for 2015 and there is an increasing likelihood for a refund in 2021.
“Additionally, CUNA supports any and all efforts for budget transparency by the agency. Much is needed to make the process work better for credit unions and their members.”
CUToday.info has full coverage of the board meeting here and here and here.