Newsroom
NCUA issues rule on subordinated debt rulemaking, approves mid-session budget revisions
The NCUA Board Thursday unanimously approved a proposed rule related to subordinated debt, amending the definition of “grandfathered secondary capital” to include secondary capital issued to the U.S. Government or one of its subdivisions under an application approved before Jan. 1, 2022.
The proposal aims to benefit low-income credit unions (LICUs) participating in the Treasury Department's Emergency Capital Investment Program (ECIP) or other programs, provided that the funds are not received by Dec. 31, 2021. NAFCU is supportive of the NCUA providing clarity on the treatment of ECIP funds for LICUs with pending secondary capital applications.
In addition, the Board also unanimously approved the mid-session budget revisions to reprogram budgeted funds for additional cybersecurity and ethics counsel positions, as well as funds for employee relocations, and more. In August, NAFCU called on the NCUA to schedule its customary mid-session budget review and increase financial transparency.
The Board was also briefed on the National Credit Union Share Insurance Fund (NCUSIF) quarterly report. The SIF quarter ending June 30 reported the equity ratio is 1.23 percent and is projected to be 1.28 percent as of Dec. 31. Currently, a restoration plan is not statutorily required at this time given the actual or projected equity ratio is above 1.2 percent. NAFCU has continuously urged the NCUA against a premium assessment and has instead called for additional investment authorities. The association supports a strong NCUSIF and a NOL, which provides adequate protection to taxpayers and minimizes the potential for premium charges to credit unions.
The association will continue to work closely with the NCUA to ensure credit unions have the resources, guidance, and flexibility needed to effectively serve their members as recovery from the coronavirus pandemic ends and into the future.
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.