NCUA to remain open, credit union members’ shares insured, while federal government closed
Monday, January 22, 2018
Agency advises credit unions to plan for members’ needs
Although the Senate voted today in support of a stopgap bill that will keep the government open until Feb. 8, the looming possibility of a longer government shutdown still hangs in the air. But no matter the status of federal government operations, the National Credit Union Administration (NCUA) will remain open, and individual accounts will remain insured.
The NCUA is an independent agency of the federal government, and its operating budget comes from fees charged to credit unions and to the National Credit Union Share Insurance Fund. Credit union members’ accounts will continue to be insured by the Share Insurance Fund.
A government shutdown could, however, affect credit unions, particularly those with federal employees in their memberships. As such, the NCUA advises credit unions to plan to respond to members’ questions and meet their financial needs during the shutdown, including:
- Ensure policies provide flexibility to respond to members’ financial needs.
- Prepare for service interruptions if the shutdown affects access to credit union offices located on federal property.
- Prudently work with affected members, including providing advances to individuals receiving direct deposits from the federal government.
- Develop contingency plans with respect to participation in government programs that may be affected by the federal government shutdown.
- Communicate response plans to members, staff and volunteers in a timely manner.
Consistent with safety and soundness, credit unions, particularly those with federal employees in their memberships, also may want to consider offering special programs to assist members who need short-term loans, create loans with special terms and rates, or offer payment flexibility.
Credit unions should review NCUA’s Letter to Credit Unions, which provides guidance in the event of a shutdown.