NASCUS PRESIDENT & CEO LUCY ITO ON THE MAY NCUA BOARD MEETING
ARLINGTON, Va. – Today, the NCUA Board held its second public meeting since the onset of the COVID-19 pandemic. At the meeting, Board issued an interim final rule on prompt corrective action (PCA) and a proposed rule on the joint ownership of share accounts. The Board was also briefed on the National Credit Union Share Insurance Fund’s quarterly report and tabled an interim final rule on overdrafts.
NASCUS President and CEO Lucy Ito issued the following statement in response to today’s meeting.
On Interim Final Rule, Part 702, Prompt Corrective Action:
“We agree that relief from net worth requirements is appropriate if declines are a result of growth in shares related to the COVID-19 crisis. Shares in credit unions are increasing from a combination of consumers’ natural tendency to save in times of crisis, recently issued stimulus checks and PPP loan disbursements, and consumers’ flight to safety. Indeed, during past crises, consumers historically have gravitated towards credit unions for the safekeeping of their household funds. While NASCUS understands that the current crisis has motivated NCUA to move swiftly, NASCUS also reminds NCUA that under §1790d of the Federal Credit Union Act, the agency is required to consult with state credit union supervisors on PCA matters. Twenty years ago, NCUA and state credit union regulators jointly crafted the PCA framework which has withstood the test of time partly due to federal-state coordination. State credit union supervisors stand ready, again, to collaborate with the agency as required by the Federal Credit Union Act.”
Shelton Roulhac, Vice President, Communications, firstname.lastname@example.org or (703) 528-5974
NASCUS is the national association that advocates for a strong and healthy state credit union system, and whose members include state regulatory agencies, credit unions, credit union leagues, and organizations that support the state credit union system.