NCUA issues non-member deposits proposal, gets CURE update
The NCUA board issued a proposed rule on non-member deposits, received an update on the Office of Credit Union Resources and Expansion (CURE) and was briefed on the National Credit Union Share Insurance Fund at its monthly meeting Thursday.
The proposal, which comes from a recommendation of NCUA’s Regulatory Reform Task Force, is intended to provide greater flexibility by changing the way the non-member deposit limit is calculated. NCUA also released a summary document comparing the current regulation to the proposed rule.
NCUA staff said that the proposal should provide some measure of relief for all credit unions but small and low-income designated credit unions would benefit the most due to their typically higher net worth ratios.
Comments on the proposal will be due within 60 days of its publication in the Federal Register.
During the CURE update, NCUA staff indicated:
- They are beginning to research ways to modernize the charter process to make it more automated and streamlined;
- CURE will be launching an online portal for organizing groups seeking to charter a new credit union In July; and
- NCUA will post a new Low-Income Designation Area Workbook to assist organizing groups and credit unions in determining low-income areas.
Finally, the quarterly update on the share insurance fund indicated total income of $80.3 million and net loss of $16.1 million for the quarter ending March 31. The balance sheet showed total liabilities and net position of $16.21 billion, an increase of roughly $360 million from Dec. 31, 2018.
Additional details on the meeting can be found on CUNA’s Removing Barriers Blog.