Lowering the normal operating level (NOL) would balance adequate protection for taxpayers while minimizing the potential for premiums charged to credit unions, suggested America’s Credit Unions in a letter sent Wednesday to NCUA Chairman Kyle Hauptman.  The letter urges the NCUA to review and solicit public feedback on the NOL and its methodology.  

The NOL remains set at 1.33%, after being lowered from 1.38% in 2022 due to industry advocacy.

“Prior to your designation as Chairman, the NCUA had indicated its intent to review the NOL. Although we recognize that the change in administration has brought about a shift in NCUA priorities, we strongly believe that this initiative should remain a priority in 2025,” the letter reads.

The letter also notes reviewing the NOL is not only permissible under recent executive orders aimed at deregulation but should be “prioritized for its ability to reduce costs for credit unions and put credit union dollars back into credit unions.”