NCUA Board to Consider Strategic Plan That Was Delayed Over Climate Plan

The National Credit Union Administration board on November 18 will consider its 2022-2026 Strategic Plan—a document that has been delayed for months, at least in part, because of conflicts over how the agency should address the financial risks of climate change.

Details of the strategic plan are not yet available since the NCUA does not release details about agenda items before the meeting.

The Strategic Plan had been scheduled for consideration at the board’s July meeting but was pulled from the agenda. At the time, sources said the board could not reach a consensus on how to address climate change in the plan.

Since that time, the Financial Stability Oversight Council has issued a report stating that climate change is a systemic risk to the safety and soundness of the financial system. As a member of FSOC, NCUA Chairman Todd Harper, a Democrat, strongly endorsed the plan.

Republican board members Kyle Hauptman and Rodney Hood have not publicly discussed the issue, but other Republicans, most notably Senate Banking Committee ranking Republican Sen. Pat Toomey of Pennsylvania, blasted Harper for playing politics.

On Nov. 18, the board also is scheduled to consider a final rule dealing with service facilities.

In December of last year, Hauptman and Hood voted to publish a proposed rule that would include any shared branch ATM or shared electronic facility in the definition of “service facility” for Multiple Common Bond federal credit unions that participate in a shared branching network. At the time, Harper said he believed the rule would violate federal law.

In September, Hood and Hauptman voted to force a final rule onto the November board agenda. Harper opposed considering the rule. Since the content of the final rule has not been released, it is not known whether the board has reached agreement on a compromise.

At the Nov. 18 meeting, the board also will receive briefings on the Share Insurance Fund’s Quarterly Report, the agency’s exam modernization efforts and an update to the NCUA’s response to the pandemic.

Related:

Harper Endorses Report Identifying Climate Change as Systemic Risk

Toomey: NCUA Chairman is Politicizing Agency with Climate Push

Amid Lack of Consensus, NCUA Board Drops Strategic Plan from Thursday Meeting

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