NCUA Board Approves TIPS Investments and Larger Rural Districts

NCUA Board Approves TIPS Investments and Larger Rural Districts
News from Credit Union Times:

This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, click the “Reprints” link at the top of any article.

The NCUA Board approved two new rules during its February meeting Thursday that expand investment powers and field of membership reach.

The maximum threshold for rural district field of membership populations will increase to 250,000, a nudge up from the current 200,000 maximum. The rule also includes a new caveat that the rural district not exceed 3% of the state’s total population.

Chairman Debbie Matz said when the board revised the limit in 2010, it wrestled with settling upon an appropriate number, and chose 200,000 thinking it could be revised if needed. Credit unions in high-population states like Texas, New York and California told the NCUA it was too restrictive. And, Matz said she met one credit union CEO in South Dakota who said the limit kept him from serving a nearby Native American reservation.

Reservations are typically financially underserved, Matz said, so raising the limit is a “move in the right direction” toward fu…………… continues on Credit Union Times

… Read the full article