March 08, 2023

NAFCU committees discuss FedNow, SIF, more

digital dollarMembers of NAFCU’s Cybersecurity and Payments Committee and Share Insurance Fund (SIF) Committee held meetings Tuesday to discuss the regulatory landscape and NAFCU’s ongoing advocacy efforts related to these issues.

During the Cybersecurity and Payments Committee meeting, members and NAFCU staff reviewed the:

During the SIF Committee meeting, members received an update on the NCUA’s investment strategy and SIF outlook. During the NCUA Board’s November 2022 meeting, the agency announced changes to its investments – stopping those in Treasuries and moving all new ones into the overnight account – as liquidity needs were assessed.

Last month, the agency announced it would build the overnight account balance to roughly $4 billion – expected to be achieved in August – through reinvestments of maturing securities as well as new investments from interest income and credit unions’ 1 percent capitalization account deposits.

The Cybersecurity and Payments Committee will next meet June 6; the SIF Committee will meet again Oct. 2.