CU regulator to consider strategic plan, liquidation rule, call report updates

A strategic plan for the next four years, a proposed rule on involuntary liquidations, and board briefings on call report modernization and inflation adjustments for civil money penalties (CMPs) are all included on the agenda for the Jan. 25 open meeting of the National Credit Union Administration (NCUA) Board.

The strategic plan, proposed in September, outlines three strategic goals for the agency: ensuring a safe and sound credit union system; providing a regulatory framework that is transparent, efficient and improves consumer access; and “maximizing organizational performance to enable mission success.”

Issued for a 60-day comment period, the plan generated five comments from credit unions and trade groups. While most supported the goals of the plan, some used the opportunity to advocate for changes in other areas of agency policy.

The Ohio Credit Union League, for example, noted that at the September NCUA Board meeting, the board set the “normal operating level” of the National Credit Union Share Insurance Fund at at 1.39%, deviating from historical precedent of 1.30%. “While we agree with Chairman (J. Mark) McWatters’ concerns about the need to plan for a recession and attempt to insulate credit unions from higher premiums during a potential recession, we believe that NCUA’s previous policy precedent of maintaining the fund at 1.30% adequately protects against a moderate recession,” wrote OCUL President and CEO Paul Mercer. “We urge NCUA to continue to analyze the NCUSIF and its operating level; 1.39% should only be maintained for a temporary period of time. NCUA should decrease the normal operating level to 1.30% as soon as possible.”

The NCUA Board meets in open session Thursday (Jan. 25) at 10 a.m. ET.