The NCUA Board finalized a loan participations rule and heard a quarterly National Credit Union Share Insurance Fund update at its Thursday meeting.
The fund ended the quarter with a net income of $37.1 million, and a net position of $20.5 million through June 30. The equity ratio stood at 1.27% as of June 30, and NCUA projects it to remain at 1.27% on Dec. 31, 2023.
The final loan participations rule clarifies NCUA’s current regulations and provides additional flexibility for federally insured credit unions to make use of advanced technologies and opportunities offered by the financial technology sector.
It also amends the rule regarding loans to members and lines of credit to members by adding new provisions about indirect lending arrangements and indirect leasing arrangements.
The rule will be effective 30 days after its publication in the Federal Register.