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Proposed rule on public unit, nonmember shares expected today
The NCUA Board meets today and is expected to approve a proposed rule related to public unit and nonmember shares. This issue was among the NCUA's Regulatory Reform Task Force recommendations; NAFCU recently met with NCUA Board Chairman Rodney Hood to discuss the agency's priorities and regulatory burdens facing the credit union industry.
Currently, credit unions are permitted to accept nonmember deposits in limited circumstances under the Federal Credit Union Act. The Regulatory Reform Task Force recommended raising the non-member deposit limit from 20 percent to 50 percent, noting that the change will "parallel the ability of credit unions to borrow from any source up to 50 percent of paid-in and unimpaired capital and surplus per Section 1757(9) of the Federal Credit Union Act."
Also on the board's agenda:
- a quarterly report on the share insurance fund – the agency announced that more than 5,500 credit unions are set to receive $160.1 million in equity distributions from the National Credit Union Share Insurance Fund (NCUSIF) this week; and
- a board briefing on the Office of Credit Union Resources and Expansion – during a recent webinar, CURE outlined its priorities for 2019, including charter modernization, more efficient internal processes and more timely responses to credit union inquiries.
The meeting is set to begin at 10 a.m. Eastern; a livestream will be available via the agency's website.