Newsroom
NCUA Board approves final rule on subordinated debt
The NCUA Board met yesterday and finalized the subordinated debt rule, granting two previous NAFCU requests related to the Emergency Capital Investment Program (ECIP) and maximum maturity limits.
The NAFCU-supported rule included provisions to extend the treatment of ECIP funds as regulatory capital to reflect the maximum permissible maturity of the note. The rule also eliminates the 20-year maximum maturity limit in favor of a more flexible test.
Additionally, NCUA Chairman Todd Harper addressed the recent failure of Silicon Valley Bank and Signature Bank by stating that the credit union system remains well capitalized and continues to have a wide range of liquidity sources including the backstop, discount window and funding facility, and the Central Liquidity Facility. Harper also reiterated “no one has ever lost a single penny of insured share deposits at the credit union system.”
Board Member Rodney Hood expressed similar sentiments, saying the current bank failures are not a repeat of 2008. Instead, Hood called it a “confidence crisis” and reassured that credit union members can be confident their money is safe, as over 90 percent of credit union accounts are insured. Vice Chairman Kyle Hauptman noted that credit unions should use this opportunity to tout the credit union difference.
NAFCU President and CEO Dan Berger sent a similar message to member credit unions this week, saying “these two failures were based solely on the institutions’ mistakes and not reflective of a systemic economic failure.”
NAFCU remains engaged with lawmakers and regulators on credit union priorities.
Share This
Related Resources
Add to Calendar 2024-04-24 14:00:00 2024-04-24 14:00:00 Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage About The Webinar Join us to learn more about network lending, a cooperative model allowing credit unions to optimize liquidity and achieve loan growth. Discover how credit unions can participate in loan pools with other institutions, allowing them to diversify portfolios, access loans with potentially lower risk and higher yields, and expand lending capacity without necessarily needing a surge in deposits. Delve into how credit unions can pool their resources, set common underwriting and pricing standards, and collectively originate, buy, and sell loans to optimize liquidity management. Hear from your peers about best practices, case studies, and practical strategies to harness the full potential of network lending and how it's helped their credit unions. Don't miss this valuable opportunity to learn how to strengthen your credit union's position in today’s competitive environment. Key Takeaways: How network lending differs from traditional lending The benefits of participating in loan pools with other credit unions How credit unions can set common underwriting and pricing standards and collectively originate, buy and sell loans to optimize liquidity management Why network lending is critical to loan growth Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage
preferred partner
LendKey
Webinar
Add to Calendar 2024-04-23 14:00:00 2024-04-23 14:00:00 Monitoring the Latest Litigation Risks Credit unions’ operations pose litigation risks, with more of these cases being filed as class action lawsuits. In this Monitoring the Latest Litigation Risks for Credit Unions webinar, you’ll review some of the specific kinds of lawsuits impacting credit unions and what potential claims could be on the horizon. You’ll also examine some options for mitigating risks. Key Takeaways Review the current lawsuit trends. Understand the potential claims risks Explore options for mitigating risks. Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 23, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Monitoring the Latest Litigation Risks
Credits: NCCO, NCRM
Webinar
Resiliency In Your Incident Response Plan
Cybersecurity
preferred partner
DefenseStorm
Blog Post
The Bottom Line on Insurance Tracking and Collateral Protection
Strategy
preferred partner
Allied Solutions
Blog Post
Get daily updates.
Subscribe to NAFCU today.