The NCUA Board Thursday unanimously approved its final interpretive ruling and policy statement that updates the Minority Depository Institution (MDI) Preservation Program’s features and clarifies the requirements for a credit union to receive and maintain an MDI designation, among other changes.
The board also received a briefing on the performance of the Share Insurance Fund (SIF) for the quarter ending Dec. 31, 2023, revealing the SIF reported a net income of $71.7 million, $21.4 billion in assets, and $126.2 million in total income. As of the fourth quarter, the equity ratio was 1.3%.
“Overall, the Share Insurance Fund’s performance in the fourth quarter of 2023 was strong,” remarked Chairman Todd Harper. “While we should recognize those positive things, today’s presentation also illustrates why we cannot become complacent in the supervision of federally insured credit unions.
“In recent quarters, the NCUA has seen growing signs of financial strain on credit union balance sheets and consumer financial stress,” added Harper. “And we continue to see that financial stress manifest itself in the number of credit unions and the percentage of assets held by composite CAMELS code 3, 4, and 5 credit unions.”
Of note, the NCUA Board canceled the March meeting; the next NCUA Board meeting will take place April 18.
