Removing Barriers Blog

CUNA Supports NCUA Proposal on Nonmember Deposits
Posted July 24, 2019 by CUNA Advocacy

Today, CUNA filed a comment letter in support of NCUA's proposed rule on public unit and nonmember shares (referred to as nonmember deposits). The proposal would replace the current nonmember deposit limit of the greater of 20% of total shares or $3 million with a limit of 50% of the difference of paid-in and unimpaired capital and surplus, less any public unit and nonmember shares.

Since we believe nonmember shares are the functional equivalent of (and no more volatile than) borrowings, we do not believe replacing the current nonmember deposit limit with the limit for borrowings would pose any increased risk to the NCUSIF. Further, we believe the proposed changes will increase the ability of credit unions to accept nonmember deposits, which will enhance growth opportunities for credit unions.

With the accelerating rate of consolidation we continue to see in the industry, it is critical that we take full advantage of all reasonable opportunities to give these important community resources a chance to not only survive but thrive.