Despite recent headwinds, including high-profile bank failures, the credit union movement is still safe and sound, says Rodney Hood, NCUA board member and immediate past chairman.
“We’re not seeing the contagion like at other financial institutions,” says Hood, who addressed the 2023 CUNA Finance Council Conference Monday via livestream.
The Silicon Valley Bank (SVB) crisis was one of confidence, he says. Ninety-percent of SVB’s deposits were uninsured. In comparison, more than 91% of credit union deposits are insured.
“We don’t have those entanglements,” Hood says. “That bodes well for our future.”
He lauded America’s 4,800 credit unions for growing membership to 135 million, assets to $2.2 trillion, and loans to $1.5 trillion.
“You’re making loans safely and soundly, with low delinquency and charge offs,” Hood says.
He cited several areas of focus for NCUA:
“We’ll be risk focused and principles based,” Hood says. “Expect to hear more from us about balance sheet management.”
“You can use whatever index makes sense to you,” Hood says.
“While we have inflation, geopolitical pressures, and banking sector contagion, we’re staying vigilant,” he says. “We want to give you the flexibility you need to serve members and remain vibrant.”
Hood’s term on the NCUA Board will expire in August.