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Federal and State Regulators Offer More Opportunities for Low-Income Credit Unions


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National Credit Union Admiinistration
John Fairbanks
Office of Public & Congressional Affairs
(703) 518-6336


National Association of State Credit Union Supervisors
Jenny Champagne
Vice President, Regulatory Development and
Government Relations
(703) 628-5974


NCUA Helping State Regulators Identify Eligible State-Chartered Credit Unions

ALEXANDRIA, Va. (Feb. 20, 2013) – State-chartered credit unions will find it easier to determine if they are eligible for designation as low-income credit unions (LICU) through a cooperative effort by the National Credit Union Administration (NCUA) and the National Association of State Credit Union Supervisors (NASCUS).

State regulators can now provide limited geographic and income data to NCUA’s AIRES system when they upload their examinations. NCUA will use that data to determine if there are state-chartered credit unions eligible for the low-income designation and provide a list to state regulators on a quarterly basis. State regulators have the sole authority to make the LICU designation for state-chartered credit unions.
“Consistency and cooperation are fundamental to effective regulation, and so is creating opportunities,” NCUA Board Chairman Debbie Matz said. “This is a great example of how state and federal regulators can work together to help state-chartered credit unions that qualify obtain a low-income designation. NCUA will provide state regulators with lists of credit unions that could qualify, and the states take it from there.”
“Streamlining the process for federally insured, state-chartered credit unions that might seek the low-income credit union designation is a tangible benefit to the state system,” NASCUS President and CEO Mary Martha Fortney said.
NCUA and NASCUS made the announcement today during a conference call with state regulators.
To qualify as a LICU, a majority of a credit union’s membership must meet low-income thresholds based on 2010 Census data.
A LICU designation can provide certain regulatory benefits to qualifying state-chartered credit unions under certain circumstances and when state law permits, including:

  • Eligibility for Community Development Revolving Loan Fund grants and low-interest loans;
  • Ability to obtain supplemental capital; 
  • Exemption from the 12.25 percent statutory cap on member business loans; and 
  • Ability to accept non-member deposits from any source.

NASCUS is the professional association of state credit union regulators. Founded in 1965, NASCUS is the only organization exclusively dedicated to defending and advancing a strong state credit union system. NASCUS promotes the safety and soundness of the state credit union system.

NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 101 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. At and Pocket Cents, NCUA also educates the public on consumer protection and financial literacy issues.


National Credit Union Administration

Office of Public & Congressional Affairs



John Fairbanks
Office: 703.518.6336
Mobile: 571.438.0801

Ben C. Hardaway
Office: 703.518.6333
Mobile: 703.298.5223

Kenzie Snowden
Office: 703.518.6334

"Protecting credit unions and the consumers who own them through effective regulation"