The NCUA board of directors held its third open meeting of 2019 yesterday and unanimously approved a final rule designed to make regulations regarding loans and lines of credit to members clearer and easier to understand.
The final rule, part of the agency’s ongoing regulatory reform agenda, is intended to make the regulation easier to follow by:
- putting all maturity limits applicable to federal credit union loans in one section;
- clarifying the maturity for a new loan under GAAP is calculated from the new date of origination; and
- clearly describing the limits for loans to a single borrower or group of associated borrowers.
The final rule will become effective 30 days after publication.
The board also offered an update on the Share Insurance Fund, which reported a net income of $226.5 million and a net position of $15.7 billion for 2018.
As previously reported, as of Dec. 31, 2019, the Share Insurance Fund’s calculated equity ratio was 1.39 percent. The equity ratio is calculated on an insured share base of $1.1 trillion. As the equity ratio was higher than the normal operating level of 1.38 percent, the Board, by notation vote March 6, approved a $160.1 million Share Insurance Fund distribution to eligible federally insured credit unions.
The board also received an update for the fourth quarter performance of 2018.
For more information, visit NCUA’s website.