NCUA HELPING STATE REGULATORS IDENTIFY LOW-INCOME
ELIGIBLE STATE-CHARTERED CREDIT UNIONS
State-chartered credit unions will find it easier to determine if
they are eligible for designation as low-income credit unions
through a cooperative effort by NCUA and the National
Association of State Credit Union Supervisors (NASCUS).
State regulators can now provide limited geographic and
income data to NCUA’s AIRES system when they upload
their examinations. NCUA will use that data to determine
if there are state-chartered credit unions eligible for the
low-income designation and provide a list to state regulators
on a quarterly basis. State regulators have the sole authority
to make the low-income credit union designation for state-chartered credit unions.
“Consistency and cooperation are fundamental to effective
regulation, and so is creating opportunities,” NCUA Board
Chairman Debbie Matz said. “This is a great example of
how state and federal regulators can work together to help
state-chartered credit unions that qualify obtain a low-
income designation. NCUA will provide state regulators with
lists of credit unions that could qualify, and the states take it
“Streamlining the process for federally insured, state-chartered
credit unions that might seek the low-income credit union
designation is a tangible benefit to the state system,” NASCUS
President and CEO Mary Martha Fortney said.
To qualify as a low-income credit union, a majority of a credit
union’s membership must meet low-income thresholds based
on 2010 Census data.
A low-income credit union designation can provide certain
regulatory benefits to qualifying state-chartered credit unions
under certain circumstances and when state law permits,
n Eligibility for Community Development Revolving Loan
Fund grants and low-interest loans;
n Ability to obtain supplemental capital;
n Exemption from the 12.25 percent statutory cap on member
business loans; and
n Ability to accept non-member deposits from any source.
At the end of 2012, 690 eligible federal credit unions accepted
the designation, bringing the total number of low-income
credit unions to 1,907.
GET THE INFORMATION
YOU NEED WITH NCUA’S
QUARTERLY MAP REVIEW
With the NCUA Quarterly U.S. Map Review,
you get up-to-date information on how credit
unions are performing financially on national
and state-by-state basis.
Find out more at http://go.usa.gov/2YY3.