CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Credit Union Magazine
    • Buyers' Guide
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » Credit unions need liquidity flexibility, bank parity
Policy & Issues

Credit unions need liquidity flexibility, bank parity

May 18, 2023
Cap1

CUNA wrote the Senate Banking, Housing, and Urban Affairs Committee in support of the credit union position on third party vendor authority, privately insured credit unions, deposit insurance reform, and the Central Liquidity Facility. The committee heard testimony from federal financial regulators Thursday, including NCUA Chairman Todd Harper.

“With more than 91% of credit union deposits insured, credit unions remain stable, safe, and secure during this time of uncertainty in the banking sector. The remaining nine percentage points represent deposits that exceed the federal maximum deposit insurance amount,” the letter reads. “The credit union difference makes us stronger by helping improve the financial well-being of Americans nationwide.”

CUNA added that America’s credit unions are well-capitalized with a 10.7% net worth-to-asset ratio and an 8.8% equity capital ratio. Credit unions’ loan-to-savings ratio stands at 82.1% and the liquidity ratio was 11.5% in February 2023, up from 11.1% in January.

The letter also notes:

  • CUNA continues to strongly object to any suggestion that the NCUA may need to charge a premium in the near future and/or that statutory changes to the NCUSIF funding guidelines are needed.
  • CUNA supports the extension of an expired CARES Act provision enhancing NCUA’s Central Liquidity Facility by, among other things, allowing corporate credit unions to act as agents for smaller (under $250 million in assets), non-CLF member, natural person credit unions.
  • Credit unions must receive parity with banks in any increased federal deposit insurance coverage.
  • Privately insured credit unions must have access to the Federal Reserve’s new Bank Term Funding Program (BTFP).
  • CUNA is concerned that granting NCUA supervisory authority over third-party vendors would require the agency to increase its budget to hire personnel with appropriate expertise.

Harper and other regulators testified before the House Financial Services Committee earlier this week , and CUNA sent a similar letter for the record.

KEYWORDS NCUA
Credit Union Magazine: Summer 2023

Summer 2023

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.
Digital Edition •  Subscribe

Trending

  • Debt ceiling deal has credit union implications

  • Final week to nominate a 2023 Credit Union Rock Star

  • CUNA to host free webinar on FedNow service strategy June 13

Tweets by CUNA_News

Polls

Do you think ChatGPT will become useful for credit unions?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us