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The NCUA Board on Thursday voted to maintain federal credit unions' current usury cap ceiling at 18 percent – as urged by NAFCU – and heard a quarterly report on the National Credit Union Share Insurance Fund that showed the fund remained in good standing through the end of 2016.

"We appreciate the leadership shown by NCUA Board Chairman J. Mark McWatters and Board Member Rick Metsger in making the prudent decision to maintain the current 18 percent usury ceiling, and we thank them for heeding our concerns on this critical issue," said NAFCU President and CEO Dan Berger. "We also appreciate their recognition of the need for greater flexibility in this area."

Thursday's open board meeting was the first led by McWatters in his capacity as acting chairman.

In January, NAFCU urged the agency board to maintain the current 18 percent usury ceiling beyond March 10, the end of the 18-month period covered by the board's last action on the cap. NAFCU President and CEO Dan Berger warned that allowing a drop back to 15 percent would be "detrimental to the safety and soundness of credit unions."

Both McWatters and Metsger noted that it might be worth asking Congress to adjust the rate to better match current economic conditions or give the board broader authority to set the rate for a longer period of time. The Federal Credit Union Act sets a cap of 15 percent but permits NCUA's board to make adjustments based on criteria related to trends in market rates.

Yesterday's action keeps the usury ceiling at 18 percent through Sept. 10, 2018.

Also during the open board meeting, NCUA Chief Financial Officer Rendell Jones gave a quarterly update on the NCUSIF, reporting that the fund ended 2016 with a net position of $12.7 billion. The equity ratio was 1.24 percent at year-end. Credit unions' insured shares grew 7 percent in 2016; the fund equity ratio is expected to again rise to 1.27 percent after credit unions make their 1 percent NCUSIF deposit adjustments this spring.

NCUA staff in November estimated a potential premium charge in 2017 of 3 to 6 basis points. NAFCU is monitoring the financials for the NCUSIF and pushing the NCUA to only charge a premium if legally necessary. The law only requires that the agency charge a premium if the NCUSIF equity ratio were to fall below 1.2 percent, but the agency's current analysis indicates the ratio is not expected to fall to 1.2 percent this year.

In December, NAFCU launched an "NCUA Money Watch" page to keep tabs on the NCUA's budget and finances.