The NCUA Board approved a federal credit union interest rate ceiling of 18% effective Sept. 11, 2024 to March 10, 2026, at its meeting Thursday. The board is required to revisit any interest rate exceeding 15% every 18 months, and it has kept the 18% since May 1987, with NCUA boards voting 23 times to maintain the 18%.

America’s Credit Unions urged the board prior to the meeting to adopt a floating interest rate ceiling to allow federal credit unions to “more fairly and fully serve their communities” through economic cycles but encouraged the board to at least maintain the 18% ceiling if not.

The board also issued proposals to:

• Require federally insured credit union boards of directors to establish succession planning processes for key positions; and
• Implement the incentive-based compensation requirements of section 956 of Dodd-Frank.

America’s Credit Unions provides members a full recap of the meeting via email, contact Head of Regulatory Advocacy Ann Petros of interested in signing up for these summaries.