Five Things Northwest Credit Unions Need to Know about NCUA’s December Board Meeting
December 18, 2018
The National Credit Union Administration held its final board meeting of the year on Dec. 13, outlining key regulatory priorities and setting the stage for an equity distribution from the Share Insurance Fund.
John Trull, Northwest Credit Union Association Vice President of Regulatory Advocacy, analyzed NCUA’s action items of interest to Northwest credit unions.
Of most interest, NCUA lowered the normal operating level (NOL) from 1.39 percent to 1.38 percent. NCUA had raised the NOL temporarily in 2017 in order to close the Temporary Corporate Credit Union Stabilization Fund. Credit unions received over $737 million in distributions as a result. Given the health of the fund, additional distributions are possible.
“We are pleased to see NCUA lower the NOL, which makes a 2019 equity distribution a possibility,” said Trull. “Your Association supports a 1.37 percent NOL at this time, with a goal of returning the NOL to 1.3 percent by 2022, following the final reconciliation of legacy assets, however, last week’s board actions took a step in the right direction.”
NCUA also outlined regulatory reform goals for next year, moving subordinated debt from a “tier three” to a “tier one” priority—a move NWCUA has advocated for.
NCUA formally created the Office of Business Innovation, which will ensure more involvement and input from credit unions.
NCUA’s Board heard the final report from the Regulatory Reform Task Force. The regulator will resume its former protocol of conducting three-year reviews and will post online updates twice per year.
Board members were also briefed on emerging fintech, including blockchain and bitcoin.
NCUA’s next board meeting is scheduled for Jan. 25. Watch for updates from Anthem on agenda items of interest to Northwest credit unions.
Posted in NCUA.