NCUA Board Member Tanya F. Otsuka during the February 2025 Board meeting
As Prepared for Delivery on February 27, 2025
Thank you, Eugene for the briefing and for everyone’s work.
I continue to be encouraged by the fund’s strong performance since our last briefing in November. This quarter, the fund’s yield was 2.50 percent, slightly higher than last quarter’s and above previous record-breaking levels.
As I have mentioned before, I am worried about growth in asset size among credit unions with a CAMELS 3 rating and higher — especially as we see how new market stressors affect consumers and businesses across the country. We need to ensure that these credit unions are being properly managed and mitigating their various risks so that rapid growth doesn’t make problems worse. While the percentage of shares held by CAMELS 3 credit unions decreased slightly last quarter, it is still at one of the highest levels we have seen since 2017 and could pose a risk to the Share Insurance Fund. We must continue to stay vigilant and monitor the Share Insurance Fund for signs of stressors, especially during relatively stable periods, so that we can be prepared for any downturns. But overall, the Share Insurance Fund remains in good health. This is a reassuring sign that the NCUA remains well-positioned to protect credit union members and safeguard the credit union system.
Congress has entrusted the NCUA with the responsibility to protect credit union members and the credit union system, and our ability to do so depends on an independent agency and strong government workforce. The independence of the NCUA is critical to maintaining confidence and stability in the credit union system. And we cannot meet our statutory mandate without the NCUA staff across the country who faithfully execute their duties with integrity, such as examining and chartering credit unions, reviewing field of membership applications, responding to questions from consumers, providing technical assistance to small credit unions and MDIs, or managing the Share Insurance Fund–the subject of our briefing today.
Share insurance is a safety net for credit union members. If you put your money in a credit union with the words “insured by the NCUA” emblazoned on the door, you can trust that you won’t lose your life savings if that credit union fails.1 Share insurance creates confidence in the credit union system, which helps credit unions attract new members and continue to grow. That is the value of an independent NCUA with dedicated public servants that go to work every day for the American people.
1 Up to applicable insurance limits. Share Insurance Coverage | NCUA.