Press

NAFCU statement on NCUA Board action on fixed-assets proposal

WASHINGTON, DC (March 19, 2015) — National Association of Federal Credit Unions (NAFCU) Director of Regulatory Affairs Alicia Nealon issued the following statement regarding today’s National Credit Union Administration (NCUA) Board meeting, during which the board released a proposed rule that would eliminate the 5 percent limit on federal credit union investments in fixed assets.

“We welcome NCUA’s effort to make the cap more flexible, a move that NAFCU has long sought,” said Nealon. “However, NAFCU firmly believes that to achieve true regulatory relief in the fixed-assets rule NCUA needs to eliminate the rule’s partial occupancy requirements.”

“NAFCU urges the agency to finalize this proposal as quickly as possible because credit unions need relief to manage their fixed assets investments based on their business needs rather than an arbitrary cap.”

NCUA issued a proposal last year to allow federal credit unions to exceed the 5 percent-of-assets limitation on investment in fixed assets if they put a program in place to control the activity.

NAFCU supported this change as part of its “Dirty Dozen” list of regulations to amend or eliminate.

The National Association of Federal Credit Unions is the only national trade association that exclusively represents the interests of federally chartered credit unions before the federal government and the public.

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