NCUA Board Member Calls Stabilization Fund Closure “the Key Driver” of Historic Share Insurance Distribution Coming This Year
WASHINGTON, D.C. (Feb. 27, 2018) – Bipartisan cooperation on the National Credit Union Administration Board has led to policies that will help credit unions position themselves to serve members however the economy might change, Board Member Rick Metsger said today.
“The financial soundness of credit unions, in aggregate, is stronger than ever before,” Metsger said. “This, just 10 years after the financial crisis put the very survival of the credit union system into question. It has been quite a comeback. When another recession comes, credit unions are well-positioned to be there to help your members weather the change in the economic climate.”
The NCUA, Metsger, said, has played an important role during this period recovery and subsequent growth. He noted the agency’s modernized regulatory framework, expansion of opportunities thr
ugh new rules governing member-business lending and fields of membership, and internal restructuring for efficiency. He said the process of change itself has been important.
“What I am most proud of is that we have accomplished these changes, and many more, through a bipartisan—or, more accurately, non-partisan—consensus,” Metsger said. “In a capital known best for discord and tribal allegiance, NCUA has been the agency that works and gets the job done.”
Metsger spoke today to an audience of approximately 5,000 attending the Credit Union National Association’s Governmental Affairs Conference here. The text of his prepared remarks is available online here.
Metsger paid particular attention to the recently announced $736 million Share Insurance distribution that credit unions should expect in the third quarter of this year, thanking CUNA for its support in the process that led to that distribution, the largest since the Share Insurance Fund was capitalized.
“The key driver behind all this was our decision to close the Corporate Stabilization Fund early and distribute its assets,” Metsger said. “Our decision has proven a wise one. Without that action, credit unions would be facing premium assessments of $1.3 billion. So, thank you to CUNA for your foresight and giving your credit unions $736 million to help your members on their savings and loan rates and to build better communities.”
“I want to thank you all for your input and suggestions over the years,” Metsger said, “and since this will likely be my last GAC, I want to thank President Obama for asking me to come out East and join the NCUA Board and later to designate me as agency Chairman. I also want to thank President Trump for allowing me to continue working with Chairman McWatters to make the credit union system stronger for working Americans.
“But you, my friends, are the true guardians of the gate to the financial hopes and aspirations of tens of millions of Americans,” he said. “Till your fields carefully and sustainably. God bless you, and may you and your credit union live long and prosper.”
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 account holders in all federal credit unions and the overwhelming majority of
state-chartered credit unions. At MyCreditUnion.gov, NCUA also educates the public on consumer protection and financial literacy issues.