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NAFCU President and CEO Dan Berger, in a new op-ed in Credit Union Journal, encouraged the NCUA to take immediate action to provide credit unions with much needed relief in the wake of the coronavirus pandemic. Berger specifically asked the regulator to ensure credit unions receive capital relief and relief from burdensome examinations, citing measures to reduce burdens on community banks in the CARES Act.

"Every tool we have in the toolbox must be used to help credit unions blunt the impact of the recession we’re beginning to enter," wrote Berger. "There is certainly no 'Plan B' to rely on."

Berger also highlighted that the NCUA has yet to address the impact the Financial Standards Accounting Board's current expected credit loss (CECL) standard will have on credit unions.

"Credit unions must have access to all options that could promote liquidity at this time, and dedicating resources to implementing CECL will not only affect institutions but their members," noted Berger. "We hope to never see the day a credit union, a champion for its members, is forced to choose between providing loan options for a member or pushing resources towards implementing a burdensome standard."

Additionally, Berger acknowledged recent actions taken by the NCUA to provide some relief, for instance, allowing credit unions to adopt a bylaw amendment to hold virtual annual meetings in certain circumstances.

During NAFCU's Q1 Member Call-In, NCUA Chairman Rodney Hood provided credit unions with an update on the agency's efforts to support the industry, including offsite exam priorities, annual meetings flexibility, and availability of urgent needs grants and loans for low-income credit unions.

Access a member-only recording of the call.

As the industry's Washington Watchdog, NAFCU will continue to work with the NCUA and other regulators to ensure a regulatory environment that allows credit unions to serve their members  throughout coronavirus relief efforts.

NAFCU has several resources available online to assist credit unions, including an updated summary table of regulator actions, detailing actions taken by the NCUA and other agencies to provide guidance and relief to financial institutions.

Credit unions are encouraged to continue contacting NAFCU with updates on how they are doing, what assistance they need, and potential areas to address as Congress begins work on a Phase 4 relief package.

Read the full editorial here.