ARLINGTON, Va.—NCUA Board Chairman Todd Harper told credit unions they need to watch for “economic fallout” from the pandemic.
Harper shared that message and provided an overview of the current priorities at the agency, during NAFCU's State of the Industry virtual event. The comments were similar to those Harper delivered during NCUA’s board meeting last week.
"Although the clouds of the COVID-19 pandemic appear to be lifting, the economic fallout continues to pose many challenges for our country and the credit union system," said Harper during his opening remarks, according to NAFCU. "Despite these challenges, however, credit unions have pressed forward doing their part to support their members and the communities they serve as financial first responders."
Harper noted that credit unions, like other financial institutions, have seen growth in deposits and assets and a substantial amount of loans remain in forbearance status.
Issues to Monitor
"In general, economic growth is expected to be solid through the remainder of this year and into next year, with shrinking unemployment rates and strong GDP growth," Harper told the NAFCU. "Despite the improving outlook, credit unions may still face a difficult environment for the foreseeable future."
Harper provided an overview of what credit unions should monitor as the nation emerges from the coronavirus pandemic, including interest rate risk, capital, asset quality, earnings, and liquidity.
At NCUA, Harper told the event the top priority is ensuring the credit union system and the share insurance fund are prepared to weather any economic fallout related to the pandemic.
"To protect the fund, we continue to monitor certain segments of the system," said Harper.