NCUA chief backs bill to tighten credit union cyber oversight

Dec. 19, 2022

The head of the National Credit Union Administration called on Congress to pass ICBA-advocated legislation that would authorize the agency to examine credit union third-party service providers for cyber risk.

Harper Op-ed: In a new American Banker op-ed, NCUA Chairman Todd Harper said bank customers have greater protection than credit union members when it comes to cybersecurity and consumer financial protection because his agency lost its temporary authority over credit union vendors and service providers “nearly a generation ago.”

Senate Bill: Harper endorsed ICBA-supported legislation introduced in August by Sens. Jon Ossoff (D-Ga.), Cynthia Lummis (R-Wyo.), and Mark Warner (D-Va.) to restore the NCUA's third-party vendor examination authority and ensure it has the same authority as bank regulators to supervise for cyber risk.

ICBA Letter: In a letter this month to the bill sponsors, ICBA said the Improving Cybersecurity of Credit Unions Act (S. 4698) would implement a recommendation of the Government Accountability Office, the Financial Stability Oversight Council, and the NCUA Inspector General. Senate Banking Committee Chairman Sherrod Brown (D-Ohio) expressed support for the bill during a hearing last month.

Grassroots: Community bankers can continue urging Congress to hold hearings on the credit union tax exemption using a customizable message to lawmakers on ICBA’s Wake Up page and its Wake Up Messaging Playbook.