NCUA Board Lowers Share Insurance Fund Normal Operating Level to 1.38 Percent

Agency Will Return to Three-Year Rolling Regulation Reviews in 2019

ALEXANDRIA, Va. – The National Credit Union Administration Board held its eleventh open meeting of 2018 at the agency’s headquarters this week and unanimously approved three items: lowering the normal operating level of the National Credit Union Share Insurance Fund to 1.38 percent from 1.39 percent, posting the final report of the agency’s Regulatory Reform Task Force in the Federal Register, following a briefing by the Office of the General Counsel, and a final rule making technical amendments to agency regulations to correct minor drafting errors and rescind certain unnecessary provisions.

The offices of the Chief Economist, General Counsel, and Examination and Insurance briefed the Board about the use of blockchain and other financial technologies by credit unions.

Board Lowers Normal Operating Level
The normal operating level of the National Credit Union Share Insurance Fund is now 1.38 percent, down from the previous level of 1.39 percent, set in 2017.

The normal operating level is the equity ratio set by the NCUA Board based on forecasted needs. The Federal Credit Union Act allows the NCUA Board to set the normal operating level between 1.20 percent and 1.50 percent. Funds available beyond the established normal operating level may be distributed to credit unions.

The agency intends to review the normal operating level annually.

Task Force Recommends Return to Regulation Review
The NCUA will return to its former practice of conducting three-year rolling reviews of its regulations and will post progress reports on its reform efforts on every six months, following recommendations made by the agency’s Regulatory Reform Task Force.

The final report, which serves as the agency’s blueprint for future regulatory reform, makes detailed recommendations and is available on the website and will be posted in the Federal Register. A report summary is also posted on the agency’s website.

The task force issued its first report in August 2017, which made detailed recommendations for amending or repealing regulations that were outdated, ineffective, or excessively burdensome. Since that report was issued, the agency has completed 10 of its recommendations and either proposed rules or begun action on five others.

The NCUA established the task force in 2017 to oversee the implementation of the agency’s regulatory reform agenda. That agenda was consistent with the purpose of Executive Order 13777, which was aimed at alleviating unnecessary regulatory burdens. While the NCUA, as an independent agency, was not required to comply with that order, the agency complied with its spirit.

Agency Seeks Comments on New Financial Technologies
The NCUA is seeking comments on the use of emerging financial technologies, such as blockchain and cryptocurrencies, and NCUA’s role in safeguarding the credit union system.

The agency’s Blockchain Working Group briefed the Board about opportunities and risks represented by these technologies and identified challenges around their use, including safety and soundness and regulatory compliance.

Credit unions may contact the working group by email at with comments or concerns about new financial technologies, their plans to use them, and the possible impact on the credit union system.

Board Approves Rule Amending NCUA Regulations
The Board approved a final rule making technical amendments to NCUA regulations to correct minor drafting errors and rescind certain unnecessary provisions that are no longer applicable to credit unions.

These are language changes that do not substantially affect credit unions.

The final rule will become effective upon publication in the Federal Register.

The NCUA tweets all open Board meetings live. Follow @TheNCUA on Twitter, and access Board Action Memorandums and NCUA rule changes at The NCUA also live streams, archives and posts videos of open Board meetings online.