NCUA Board Member Rodney E. Hood Statement on the Capitalization of Interest

As Prepared for Delivery on June 24, 2021

Keeping regulation effective, but not excessive has been a top priority of mine and a theme of my tenure on the NCUA Board. That is why I've spent a fair amount of time exploring the areas where the agency could prudently relieve burdensome regulations where appropriate, without losing sight of our safety and soundness mission. At the onset of the COVID 19 pandemic, that priority shifted into high gear.

As we move to a world post COVID-19, how can credit unions benefit from this final rule? Said another way, can you state for the record why this rule matters to credit unions now, especially as it seems we are turning the corner on recovering from COVID-19?

Thank you. The final rule amends the requirement in the May 2012 final rule that relates to the capitalization of interest. The credit union industry has a long history of assisting its member owners in times of need. While I wish we had this tool in the toolbox for credit unions earlier in the pandemic, it is better to have this rule done now than not at all.

While I do not have any further questions on the pending question before us today and will be supporting this final rule, in closing Mr. Chairman, I just would like to say I look forward to working with my Board colleagues to bring a final CUSO rule forward as soon as possible. And, based on previous conversations with Board offices, I appreciate the Board’s commitment to do just that. Thank you.