Newsroom
NCUA votes to maintain interest rate ceiling at 18%
The NCUA Board held its first meeting of the year yesterday and unanimously approved maintaining the current temporary 18 percent interest rate ceiling for loans made by federal credit unions (FCUs) for a new 18-month period. The extension begins after the current period expires March 10. The NCUA Board has consistently maintained the interest rate ceiling at 18 percent for decades by extending the expiration date.
NAFCU urged the NCUA to make adjustments that will mitigate FCUs’ interest-rate-related risks and enable FCUs to better serve their communities ahead of the meeting, including by immediately raising the ceiling to 21 percent. NAFCU has consistently advocated for a floating permissible interest rate ceiling to address constraints of the 15 percent ceiling set by the FCU Act.
During the meeting, NCUA Chairman Todd Harper noted that the floating interest rate ceiling is an interesting point and that the NCUA should complete its analysis by the April Board meeting. Board Member Rodney Hood quoted NAFCU’s letter when expressing concerns about maintaining the rate at 18 percent.
Additionally, the agency unanimously approved its 2023 Annual Performance Plan. While the NCUA’s strategic and performance goals are mostly the same as last year, the plan provides more specifics regarding the metrics the agency will use to track its efforts.
NAFCU will continue to engage the NCUA, including reiterating the need to establish a floating permissible interest rate ceiling.
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.