The NAFCU Journal January - February 2018 - 6

ADVOCACY SNAPSHOT

Capital Is Still King
By Carrie R. Hunt

T

he NCUA is working on a plan
this year to send insured credit
unions potentially $600 million
to $800 million as a distribution from the National Credit Union
Share Insurance Fund (NCUSIF). While
any money back in the hands of credit
unions is always a good thing, returns
from corporate stabilization are just one
piece of balance sheet strength.

Again, the merging of the Temporary
Corporate Credit Union Stabilization
Fund (TCCUSF) into the NCUSIF does
give credit unions some of their money
back. However, the concurrent increase
in the share insurance fund normal
operating level (NOL) from 1.3 percent
to 1.39 percent limits the potential for
future dividends - which could have an
impact on credit unions' earnings, and
thus capital.
NAFCU's analysis continues to show that
the industry and share insurance fund
would remain well served by a 1.3 percent NOL. Therefore, we will maintain
our advocacy for a return of the NOL to
this level and will closely monitor the
agency's actions regarding the anticipated distribution this year and, hopefully, more in the years to come.
Regarding this year's distribution, here is
what credit unions will want to keep in
mind in the months ahead:
■■

6

In March, after year-end insured
shares are reported, the NCUA will
determine how much money will be
distributed to insured credit unions
in 2018.

■■

During the second quarter, the agency
will issue information on the distribution amount and how credit unions
will be required to account for it.

NAFCU has always supported a strong
share insurance fund and a well-capitalized credit union industry. We will be
encouraging the NCUA to do all it can
to ensure the money it's managing on
behalf of the credit union industry to
provide federal share insurance is being
handled in as smart and as efficient a
manner as possible.
While NAFCU is pushing for future distributions from the fund, the association
is also calling for a fair capital system for
credit unions that allows them to better
meet the needs of their members. And
NAFCU is not alone in its efforts. Lawmakers and NCUA Chairman J. Mark
McWatters agree that changes and

improvements need to be made to credit
unions' capital system.
In the Treasury report A Financial System That Creates Economic Opportunities,
Treasury supports changes to capital for
credit unions, but it also is supportive
of relaxing risk rules for banks. Credit
union competitiveness is already an issue
because of the limited means to raise
capital. For credit unions, having stronger rules than banks have for less-risky
activities would be untenable.
NAFCU will do whatever it takes on the
legislative and regulatory front - as we
always have - to ensure that a fair capital system is established for credit unions
and that the industry is strong.
Carrie R. Hunt is NAFCU's executive
vice president of government affairs and
general counsel.

THE NAFCU JOURNAL  JANUARY-FEBRUARY 2018



Table of Contents for the Digital Edition of The NAFCU Journal January - February 2018

Conferences
From the Chair
Advocacy Snapshot
Washington and Industry Briefs
Growth Strategies
Stepping Into the Future
A Clear Path Forward
Economic Outlook: It’s Complicated
NAFCU 2018 Vendor Directory
Executive Spotlight
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal January - February 2018 - Cover1
The NAFCU Journal January - February 2018 - Cover2
The NAFCU Journal January - February 2018 - 1
The NAFCU Journal January - February 2018 - 2
The NAFCU Journal January - February 2018 - Conferences
The NAFCU Journal January - February 2018 - From the Chair
The NAFCU Journal January - February 2018 - 5
The NAFCU Journal January - February 2018 - Advocacy Snapshot
The NAFCU Journal January - February 2018 - 7
The NAFCU Journal January - February 2018 - Washington and Industry Briefs
The NAFCU Journal January - February 2018 - 9
The NAFCU Journal January - February 2018 - 10
The NAFCU Journal January - February 2018 - 11
The NAFCU Journal January - February 2018 - 12
The NAFCU Journal January - February 2018 - 13
The NAFCU Journal January - February 2018 - 14
The NAFCU Journal January - February 2018 - 15
The NAFCU Journal January - February 2018 - Growth Strategies
The NAFCU Journal January - February 2018 - 17
The NAFCU Journal January - February 2018 - Stepping Into the Future
The NAFCU Journal January - February 2018 - 19
The NAFCU Journal January - February 2018 - 20
The NAFCU Journal January - February 2018 - 21
The NAFCU Journal January - February 2018 - A Clear Path Forward
The NAFCU Journal January - February 2018 - 23
The NAFCU Journal January - February 2018 - 24
The NAFCU Journal January - February 2018 - 25
The NAFCU Journal January - February 2018 - Economic Outlook: It’s Complicated
The NAFCU Journal January - February 2018 - 27
The NAFCU Journal January - February 2018 - 28
The NAFCU Journal January - February 2018 - 29
The NAFCU Journal January - February 2018 - 30
The NAFCU Journal January - February 2018 - 31
The NAFCU Journal January - February 2018 - 32
The NAFCU Journal January - February 2018 - 33
The NAFCU Journal January - February 2018 - 34
The NAFCU Journal January - February 2018 - NAFCU 2018 Vendor Directory
The NAFCU Journal January - February 2018 - 36
The NAFCU Journal January - February 2018 - 37
The NAFCU Journal January - February 2018 - 38
The NAFCU Journal January - February 2018 - 39
The NAFCU Journal January - February 2018 - 40
The NAFCU Journal January - February 2018 - 41
The NAFCU Journal January - February 2018 - 42
The NAFCU Journal January - February 2018 - 43
The NAFCU Journal January - February 2018 - 44
The NAFCU Journal January - February 2018 - 45
The NAFCU Journal January - February 2018 - 46
The NAFCU Journal January - February 2018 - 47
The NAFCU Journal January - February 2018 - 48
The NAFCU Journal January - February 2018 - 49
The NAFCU Journal January - February 2018 - 50
The NAFCU Journal January - February 2018 - 51
The NAFCU Journal January - February 2018 - Executive Spotlight
The NAFCU Journal January - February 2018 - 53
The NAFCU Journal January - February 2018 - Management Insight
The NAFCU Journal January - February 2018 - 55
The NAFCU Journal January - February 2018 - Compliance Central
The NAFCU Journal January - February 2018 - 57
The NAFCU Journal January - February 2018 - Inside NAFCU Services
The NAFCU Journal January - February 2018 - 59
The NAFCU Journal January - February 2018 - From the President’s Desk
The NAFCU Journal January - February 2018 - Cover3
The NAFCU Journal January - February 2018 - Cover4
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