WASHINGTON – After the NCUA board Thursday approved decreasing the National Credit Union Share Insurance Fund's normal operating level (NOL) from 1.39% to 1.38%, both CUNA and NAFCU applauded the move.
NAFCU, however, is hoping the agency will consider further NOL reductions, back to 1.3%, so credit unions can realize the “fullest distribution (NCUSIF rebate) possible. This decrease is a positive development and we thank the NCUA for taking this step," said NAFCU Chief Economist and Vice President of Research Curt
Long. "We will continue to press the NCUA to reduce the NOL for further distributions."
CUNA Chief Advocacy Officer Ryan Donovan thanked NCUA for taking action to phase down the NOL.
“We strongly supported NCUA issuing share insurance fund distributions with the expectation that a rise in the NOL was temporary,” he said. “We’re encouraged that NCUA is honoring its commitment to review the NOL each year, and look forward to the possibility of an additional dividend depending on NCUA’s analysis.”
Regulatory Reform Task Force
The NCUA board Thursday also voted to publish the second report from its Regulatory Reform Task Force, and NASCUS supported the decision.
“NASCUS appreciates NCUA’s efforts to ease the regulatory burden of credit unions and looks forward to reviewing the final report of the agency’s Regulatory Reform Task Force,” said NASCUS President and CEO Lucy Ito. “We also renew our call for the agency to co-locate and combine all insurance-related rules in one section of the agency’s list of regulations. By consolidating insurance rules, NCUA could provide substantial regulatory relief to federally insured state chartered credit unions (FISCUs) in a manner consistent with its regulatory reform efforts to co-locate and combine other rules such as loan maturity and single borrower provisions. Co-locating and combining insurance-related rules will also benefit state and federal examiners, as they will be able to more easily understand which rules apply to FISCUs.”