On May 12, NCUA Board Chairman Rodney Hood provided video testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs, including a state-of-the-industry update and outline of the agency’s efforts to provide regulatory relief and guidance to credit unions during the COVID-19 public health crisis.
Hood said, “The NCUA also appreciates the additional PPP funding under the Paycheck Protection Program and Health Care Enhancement Act, which includes $60 billion specifically allocated to community-based institutions like credit unions. The increased funding for this program will help credit unions serve their members and greatly benefit local communities and small businesses across the country.
“Embedded in the fabric of their communities, credit unions are well positioned to meet the financial and credit needs of small businesses and entrepreneurs and support local communities. The NCUA supports credit unions’ efforts to use the SBA’s PPP program to aid businesses and members affected by COVID-19.”
He also explained the challenges of the pandemic have required the NCUA to identify new methods for supporting credit unions and for maintaining the safety and soundness.
The NCUA is modifying its examination and supervision program to address the new economic and operational changes resulting from the COVID-19 pandemic, and assessing emerging risks, including the likelihood of elevated liquidity and credit risk, and the risk exposure to individual credit unions, the system as a whole and the Share Insurance Fund.
See Hood’s complete testimony here.