NCUA Chairman Todd Harper and Board Member Rodney Hood addressed credit unions on the second day of NAFCU’s Congressional Caucus to share details on the NCUA’s efforts to bolster financial inclusion and innovation, interest rate and liquidity risks, and more.
In his opening remarks, Harper discussed the NCUA’s call report data from the second quarter. He noted that data gave him “cautious optimism” as the increase in lending and assets show the strength of the industry. However, he added that there has been an increase in credit risk, liquidity risk, and economic stressors.
Additionally, Harper sat down for a fireside chat with NAFCU Senior Vice President of Government Affairs Greg Mesack. During the discussion, Harper reiterated that 91 percent of deposits are insured at federally insured credit unions. He also said the NCUA is aiming to do more with field of membership reform, but it must be within the “four corners of the law.” Harper added that the agency is considering more ways to handle increasing liquidity risk after the March bank failures.
NCUA Board Member Rodney Hood also highlighted the call report data, including the 1.57 trillion in outstanding loans. Hood remarked that he was “proud” of the number because it shows that credit unions continue to give capital to members. He stressed that credit unions need to focus on cybersecurity, fraud prevention, and liquidity risk – including making use of the Central Liquidity Facility.
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