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NCUA Board approves 2022-2026 Strategic Plan; 2022 Annual Performance Plan
The NCUA Board Thursday unanimously approved the agency’s 2022-2026 strategic plan. These changes include revising the narrative describing the long-term risk posed by climate-related financial risk and adding additional strategies to support small, minority, new, and low-income designated credit unions and underserved areas. These changes align with recommendations in NAFCU’s letter to the NCUA.
In addition, the Board unanimously approved the agency’s 2022 Annual Performance Plan, which provides specific direction and guidance toward achieving the mission and the strategic goals and objectives outlined in the 2022–2026 Strategic Plan.
The Board also received a briefing on updates to the Corporate System Resolution Program, discussing the recent $569 million distribution to more than 2,100 membership capital shareholders of the former corporate credit unions. Of note, the remaining resolution components include liquidation of securities, litigation, and corporate asset management estate (AME) distributions; they expect final distributions to occur in 2023.
During the meeting, NCUA Chairman Todd Harper highlighted the risk of cyberattacks to all credit unions due to the war in Ukraine, and directed credit unions to the NCUA alert concerning a potential or pending Russian state-sponsored cybersecurity threat due to recent “malicious cyber incidents.”
The Board expressed disappointment that the Central Liquidity Facility (CLF) enhancements in the CARES Act were not made permanent in the recently passed omnibus package, warning that the lack of access to liquidity puts credit unions at risk. NAFCU has called on Congress to make these changes to the CLF permanent.
Board Member Rodney Hood also shared support to allow credit unions that are low-income designated credit unions (LICU), to always remain a LICU saying that “once an underserved area, always an underserved area.”
Of note, the NCUA released its 2021 Annual Report Wednesday, which highlights the agency’s activities, policy initiatives, and accomplishments for the past year.
“In 2021, the NCUA worked to ensure credit union members were protected and the credit union system and the National Credit Union Share Insurance Fund were prepared to weather any economic fallout related to the pandemic,” stated Chairman Harper. “Despite the year’s many challenges, the credit union system, as a whole, continued to perform well, remaining well capitalized with sufficient levels of liquidity.
“This is a testament to the strength of the credit union system going into the pandemic and the skillful management of credit union CEOs, boards of directors, and NCUA employees over the last two years,” added Harper.
Watch the Board meeting on the NCUA website. NAFCU will continue to work with the NCUA and update credit unions on the latest news.