NCUA's borrowing authority would be raised from $100 million to $6 billion and it would receive an additional $18 billion in emergency borrowing authority under the provisions of an amendment that the Senate Banking Committee is scheduled to consider tomorrow.
Sens. Michael Crapo (R-Idaho) and Bob Corker (R-Tenn.) are planning to offer an amendment containing those provisions and one that would give the NCUA five years to replenish the NCUSIF if its equity ratio drops below 1.2%, during discussion of a bill that would overhaul the rules regarding credit cards.
"NCUA is very supportive of this effort by Senators Crapo and Corker to address NCUSIF issues. On borrowing authority, emergency borrowing authority and premium replenishment, NCUA has been urging timely Congressional action, and we are encouraged that the issues are now being considered in this forum," said NCUA Director of Public and Legislative Affairs John McKechnie.
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The House passed a bill containing that amendment.
The Senate amendment does not deal with NCUA's proposal to create a stabilization fund for corporate credit unions, which McKechnie said would hopefully be considered later in April.
The amendment, which CUNA and NAFCU support, could place them in a difficult situation since they have both expressed objections to provisions of the legislation that would place stricter regulations on credit card issuers.
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