NCUA Board to Deal with Interest Rate Ceiling
The NCUA is scheduled to vote on Thursday whether to keep 18% as the top interest rate that federal credit unions can charge on their loans and credit cards.
In a letter, NAFCU President Fred Becker urged the board to keep the cap because "lowering the interest rate will be detrimental to the safety and soundness of credit unions as it could potentially result in a loss of capital."
Federal credit unions are the only depository institutions required to comply with such a cap.
The board is also scheduled to unveil and vote on proposed rules regarding the NCUSIF premium and 1% deposit. Among the issues that the rule could address is if a credit union switches to private insurance how would this impact what they owe the fund over the period during the period when the Corporate Stabilization Fund is being replenished.
The board is also slated to vote on final rules on credit union reporting and disclosures under the Truth in Savings Act.
In addition, the agenda also includes the regular report on the NCUSIF and some changes to the agency.
The meeting is scheduled to be held at agency headquarters at 10:00 a.m. followed by an executive session at 11:15.