Interest rate cap briefing, climate risk RFI on NCUA’s April 20 agenda
April 13, 2023
The NCUA board will be briefed on the federal credit union interest rate ceiling and issue a request for information on climate-related financial risk at its April 20 meeting. CUNA requested NCUA consider increasing the fixed rate cap or adopting a floating rate cap in recent engagement with the agency.
The Federal Credit Union Act provides a default interest rate limit for federal credit union loans of 15%, and permits the NCUA Board to increase the rate cap if certain conditions are met. It has been 18% since the late 1980s, most recently renewed in January.
CUNA has asked the agency to be mindful of the current interest rate environment—particularly the Fed’s recent and continuing rate hikes—when reviewing the ceiling.
Credit Union Magazine’s Summer 2023 issue highlights the lending outlook for the rest of the year, how credit unions leverage fintech companies to boost digital lending, the power of lending partnerships, common Bank Secrecy Act violations, and the shift board members must make when becoming chair.
