Johnson reviews NCUA initiatives after Katrina

ALEXANDRIA, Va. (8/30/06)—On the day proclaimed a National Day of Remembrance for Hurricane Katrina by President Bush, Chairman JoAnn Johnson of the National Credit Union Administration (NCUA) commended credit unions Tuesday for their perseverance, courage and resourcefulness during and after one of the deadliest and costliest natural disasters in U.S. history.

"We can all be very proud of how credit unions worked with NCUA and other government officials, trade associations and vendors toward the common goal of restoring basic financial services to those affected by Hurricane Katrina," Johnson said in a statement. "I was especially inspired by credit union staff who, despite being personally impacted by the Hurricane, made the continued operation of their credit union a priority."

Johnson also used the occasion to review her agency's initiatives during the Katrina recovery process. They included:

  • Issuing a temporary ruling to allow federal credit unions to provide emergency services to other credit unions, including check cashing and ATM access in order to meet short-term emergency needs;

  • Using its insurance authority and working with the corporate credit union system guaranteed loans to meet settlement demands on impacted credit unions. Johnson said this step allowed credit unions to continue service to members at a time of extreme dislocation in the entire financial system;

  • Encouraging data processing vendors to provide potential backup should credit unions need support to return to full operational status;

  • Allocating $120,000 in Community Development Revolving Loan Fund (CDRLF) technical assistance grants for low-income credit unions located in designated disaster areas resulting from Hurricane Katrina;

  • Establishing a toll-free number, email addresses, and an updated website to provide vital contact information for credit union members; and

  • Activating the disaster relief policy to assist credit unions and their members repair and rebuild in areas damaged by Hurricane Katrina.
"The one year anniversary of Hurricane Katrina is a solemn reminder of the loss that all Americans felt when disaster struck. But it should also serve as a call for the NCUA, working with the credit union industry, to use the 'people helping people' philosophy that has defined credit unions for almost a century to help rebuild the communities and spirits of the Gulf Coast," Johnson said in her statement.

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