NAFCU Statement on NCUA’s Report on Stabilization Assessment, Interest Rate Ceiling and Operating Budget

Jessica Lewis
Asst. PR Manager

Washington – National Association of Federal Credit Unions (NAFCU) President and CEO Fred R. Becker Jr. today issued the following statement regarding the National Credit Union Administration’s (NCUA) action on Temporary Corporate Credit Union Stabilization Fund (TCCUSF) , the interest rate ceiling, its report on Truth in Lending Act rules, emergency liquidity and operating budget.

“NAFCU has consistently urged the NCUA to keep any assessment on credit unions as low as possible.  While today’s assessment is within the estimated range, we will continue to push the NCUA to ensure that assessments take into full account the impact on credit unions.

“NAFCU is pleased that NCUA heeded our recommendation to maintain the current 18 percent loan rate ceiling to help keep credit unions competitive in meeting their members’ loan needs.

“While NAFCU appreciates NCUA’s reduction of the 2012 budget in its mid-year review, we continue to believe the agency can and should do more to lower its operating expenses.  As we did just recently, we will continue to push for transparency in the budgeting process, and push for the return of hearings on the budget before the NCUA Board adopts it. And we will continue to press the agency to leave no stone unturned in its effort to find opportunities to decrease expenses, which are borne by credit unions.

“Also, while NAFCU supports a healthy Central Liquidity Facility, we do not support NCUA’s additional regulation on this matter by requiring backup sources of liquidity for any credit unions.  NAFCU recommended that the agency include the option to maintain membership in one of the Federal Home Loan Banks and to maintain a percentage of highly liquid assets, not just Treasuries, in any final rule. We are disappointed that the NCUA failed to provide credit unions with at least these additional options.”

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The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.

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