NCUA Board Meeting Held

The National Credit Union Administration (NCUA) Board held its fifth open meeting of 2019 at the agency’s headquarters and unanimously approved one item: A proposed rule allowing a federal credit union to accept nonmember and public unit shares up to 50 percent of its unimpaired capital and surplus.

The Director of the Office of Credit Union Resources and Expansion briefed the Board on the office’s upcoming activities and the Chief Financial Officer briefed the Board on the performance of the National Credit Union Share Insurance Fund. Here are some of the details:

  • CURE Offering Assistance for Chartering, Low-Income Designation
    • The NCUA’s Office of Credit Union Resources and Expansion will offer more resources for credit unions to identify low-income areas they might serve and to assist people organizing credit unions with the chartering process.
    • The NCUA has a new online low-income designation area workbook that organizing groups and existing credit unions can use to research low-income areas they can target for possible member recruitment and outreach.
  • Share Insurance Fund Follows Recent Overall Trends
    • The Share Insurance Fund reported a net income of $16.1 million and a net position of $15.8 billion for the first quarter of 2019.
    • The fund’s total assets increased to $16.2 billion at the end of the quarter from $15.8 billion at the end of the fourth quarter of 2018.
    • The NCUA Board approved a $160.1 million Share Insurance distribution in March. The distribution was made this week for more than 5,500 eligible federally insured credit unions. It is the second largest Share Insurance distribution in the history of the fund.
    • The agency has, in the past 11 months, made nearly $900 million in equity distributions.
  • Proposed Rule Raises Nonmember Shares Limit to 50 Percent
    • Federal credit unions would be able to accept nonmember and public unit shares up to 50 percent of paid-in and unimpaired capital and surplus under a proposed rule approved by the Board.
    • The proposed rule is part of the agency’s regulatory reform agenda.

Click here to view the entire NCUA Board press release.