CUNA encouraged NCUA to analyze ways regulations governing non-member deposits could be improved without posing additional risk, given the significant benefits such changes would provide. CUNA President/CEO Jim Nussle wrote to NCUA Chairman J. Mark McWatters and board member Rick Metsger to follow up on recent meetings between agency staff and CUNA’s Small Credit Union Committee.
NCUA regulations state that credit unions cannot accept non-member deposits at a level greater than 20% of total assets, or $3 million. Exceptions to exceed those limits can be permissible of the financial condition and management are sound and the credit union’s plan for the fund is reasonable.
“Recognizing the fact that some credit unions have in the past exceeded existing thresholds, we support any adjustments to limits or rules that would include safeguards and education for credit unions that leverage non-member deposits in their operations to protect both the insurance fund and the credit unions themselves,” Nussle wrote. “Still, we feel there are adjustments that could be made that would benefit small credit unions while not posing additional risk.”
CUNA suggests the following areas be considered should NCUA take up this issue: