ALEXANDRIA, Va.—When the NCUA board meets Thursday it will be briefed on the federal credit union interest rate ceiling and receive an update on cybersecurity. The board will also issue a request for information (RFI) on climate-related financial risk.
The Federal Credit Union Act provides a default interest rate limit for federal credit union loans of 15% and permits the NCUA Board to increase the rate cap if certain conditions are met. It has been 18% since the late 1980s.
CUNA has asked the agency to be mindful of the current interest rate environment—particularly the Fed’s recent and continuing rate hikes—when reviewing the ceiling.
NAFCU has asked the agency to establish a floating permissible interest rate ceiling to permanently address constraints and issues posed by the 15%. The association has also called for the ceiling to be raised to 21%.
The meeting will begin at 10 a.m. ET and will be livestreamed on the agency’s website. CUToday.info will provide complete coverage.