Federal credit unions’ strong financial performance precludes the need to raise the National Credit Union Share Insurance Fund (NCUSIF) normal operating level from 1.33% of insured shares, NCUA Board Member Rodney Hood told attendees at the 2022 CUNA Finance Council Conference in Las Vegas.
“Federal credit unions have continued to perform well, with most performing better than ever,” says Hood, who appeared via Zoom. “We have a strong fund with strong performance measures, so I don’t see anything on the horizon for any type of premium or something of that nature.”
He praised credit unions for increasing membership by seven million since the start of the pandemic to 130 million members, and for reaching $2.06 trillion in assets, including $1.7 trillion in loans.
“You’ve done this with no diminishment in loan quality,” Hood says, despite challenges including high inflation, supply chain issues, and the war in Ukraine.
“This represents a new environment for many Americans,” he says. “My hope is that these challenges are just manageable turbulence on the way to recovery.”
Credit unions’ small dollar loans assist America’s most needy, Hood adds, citing the fact that 40% of U.S. households couldn’t obtain $400 to cover an emergency expense.
Hood also reviewed the agency’s supervisory priorities relating to finance leaders: