NCUA Reports LICU Record
Almost 25% of U.S. credit union memberships are at low-income credit unions.
Two years after the NCUA launched an effort to make more credit unions aware of their eligibility to be designated as low-income institutions, the agency reported Friday that 2,107 credit unions have been recognized as low income. The NCUA also reported low-income credit unions collectively hold $218 billion in assets, and more than 70% of them have fewer than $50 million in assets.
In order to qualify as a low-income credit union, a majority of the credit union’s membership must meet low-income thresholds based on the 2010 census, the NCUA said.
“(The) NCUA introduced the low-income credit union initiative two years ago as part of my Regulatory Modernization Initiative,” NCUA Chairman Debbie Matz said. “This was a significant easing of a regulatory burden for those credit unions that were eligible for the designation. These credit unions have expanded access to affordable financial services to low- and moderate-income members, developed financial literacy programs and increased their own service capacity through staff training.”
Designated low-income credit unions have an exemption from the statutory 12.25% cap on credit union business lending. They are also eligible for low interest loans and grants from the Community Developing Revolving Loan Fund, qualify for free NCUA consulting, may accept deposits from non-members and are authorized to obtain supplemental capital.