As the NCUA Board Thursday received a quarterly briefing on the National Credit Union Share Insurance Fund (NCUSIF), Chairman Todd Harper said the fund is the agency’s top priority for 2021 as it works to ensure it can withstand fallout from the COVID-19 recession, and again indicated that a premium may be assessed this year.
“NAFCU strongly believes that charging a SIF premium is unnecessary as the fund rests on solid financial footing,” said NAFCU Chief Economist and Vice President of Research Curt Long. “Amid a global pandemic and economic downturn, credit unions should be allowed to direct the money they hold toward serving their members, and it should not be siphoned off into an already stable and healthy SIF.”
Harper, in his comments, acknowledged that a premium would be a short-term solution and said additional reforms, such as Congress granting the NCUA additional flexibility to manage the NCUSIF, are needed. NAFCU has urged the NCUA to consider alternatives, including granting credit unions additional investment authorities even on a temporary basis, instead of charging a premium to address credit unions’ strong share growth amid the coronavirus pandemic.
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