NAFCU asks NCUA to increase interest rate ceiling
The National Credit Union Administration (NCUA) should immediately increase its permissible interest rate ceiling, the National Association of Federally Insured Credit Unions (NAFCU) said Thursday.
In a letter to the agency’s board, Ann Kossachev, NAFCU’s vice president of regulatory affairs, wrote that based on current economic conditions, the NCUA should establish a floating permissible interest rate ceiling equal to a 15% spread over prime.
“NAFCU urges the NCUA board to immediately raise the permissible interest rate ceiling to mitigate unnecessary interest rate risks posed to federal credit unions during this critical period of economic recovery and to enable all federal credit unions to more confidently endeavor to serve the underserved and unserved in their communities,” she told the agency.
What Is the NCUA’s Current Interest Rate Ceiling?
The NCUA set its current interest rate ceiling of 18% in 1987 and its board has since voted more than 20 times to maintain that number.
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