Good news on premium, but vigilance necessary, Ito notes

(May 21, 2021) The development that, at least for now, a premium won’t be necessary to be paid by federally insured credit unions to the NCUSIF is good news for all credit unions, NASCUS President and CEO Lucy Ito said Thursday. However, she cautioned, vigilance is crucial. “Certainly there is more ahead to play out for the economy – but there is no crystal ball on the outcome for any of us. The credit union system, in any event, will have to watch all indicators carefully to determine which way things are going, and even consider some alternative approaches if necessary. Board Member Rodney Hood asked several insightful questions about the insurance fund’s investment powers and strategies – which may spark a conversation about an alternative approach for staving off premiums in the future. In any event: the state system will be part of any conversations about the fund’s finances, and the impact on the state system.”