BRIEFLY: SIF’s ‘normal operating level’ set at 1.33%; New director in Alaska; OCC finalizes rescinding of 2020 CRA rulemaking

(Dec. 17, 2021) The “normal operating level” (NOL) of the NCUSIF – the level at which NCUA considers whether it needs to inject more reserves into the fund to cover looming losses, primarily through premiums – was set at 1.33% by the agency board Thursday. The decision was made after the agency dropped two of eight factors it uses to set the NOL as “no longer necessary” (the modeled potential decline in value of the NCUSIF’s claims on the corporate asset management estates; and to account for a potential projected equity ratio decline through the end of the following year without an economic downturn) … Robert (“Rob”) Schmidt is the new director of the Alaska Division of Banking and Securities; he succeeds James McConnell who left in October … The OCC finalized rescission of its 2020 rule implementing the Community Reinvestment Act (CRA), reverting agency rules to those adopted in 1995 and followed by its fellow federal banking regulators. The 2020 CRA rule was rescinded, the OCC said, to “facilitate the ongoing interagency work to modernize the CRA regulatory framework and promote consistency for all insured depository institutions.”

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Share Insurance Fund 2022 Normal Operating Level