The NCUA board extended its previous COVID-19 relief through the end of 2021, approved its subordinated debt final rule and proposed an overdraft rule, among other items on its agenda Thursday. The board will meet again Friday to vote on the agency’s proposed budget.
“We thank NCUA for taking actions today that will help credit unions increase services to members hit hard by the pandemic,” said CUNA President/CEO Jim Nussle. “The subordinated debt rule will go a long way toward helping credit unions raise additional capital if needed, and the overdraft proposal would provide additional flexibility for credit unions to work with their members.”
Specifically, the extended COVID-19 relief:
The board also issued a proposed overdraft rule that would modify the requirement that a federal credit union’s written overdraft policy establish a time limit, not to exceed 45 calendar days, for a member to either deposit funds or obtain an approved loan from the FCU to cover each overdraft.
The proposal would remove the 45-day limit and replace it with a requirement that the written policy must establish a specific time limit that is both reasonable and applicable to all members, for a member either to deposit funds or obtain an approved loan from the federal credit union to cover each overdraft.
Other highlights of the meeting include: