The National Credit Union Administration (NCUA) Board will be briefed on the federal credit union interest rate ceiling and issue a request for information on climate-related financial risk at its April 20 meeting.
During the California and Nevada Credit Union Leagues’ meetings and visits at the 2023 Governmental Affairs Conference (GAC) in Washington, D.C. earlier this year, credit union and League leaders urged the NCUA to make considerations regarding the federal loan interest rate ceiling, particularly during conversations with NCUA Board Chairman Todd Harper. The Leagues requested NCUA to consider increasing the fixed-rate cap or adopting a floating-rate cap, requesting the agency to be mindful of the current interest rate environment — particularly the Federal Reserve’s recent and continuing rate hikes — when reviewing the ceiling. The Leagues will monitor the board meeting and provide an update soon after.
In conjunction with the Leagues, the Credit Union National Association (CUNA) had requested NCUA consider increasing the fixed rate cap or adopting a floating rate cap in recent engagement with the agency.
The Federal Credit Union Act provides a default interest rate limit for federal credit union loans of 15 percent and permits the NCUA Board to increase the rate cap if certain conditions are met. It has been 18 percent since the late 1980s, most recently renewed in January.
The complete agenda for the meeting is:
The meeting will be streamed live on NCUA.gov starting 7 a.m. (Pacific) on April 20.