WASHINGTON — NCUA Chairman Michael E. Fryzel said the House bill passed today on illiquid asset purchases and deposit insurance will strengthen his agency's ability to regulate during the current economic downturn.

"I firmly believe that these actions will add important dimensions of financial and regulatory assistance to NCUA, credit unions and the entire financial services industry. I will move forward expeditiously and with a sense of purpose as we employ the new tools at our disposal," he said in a statement.

Under the measure, which the House passed 263-171, the amount of deposit insured by the NCUA's Share Insurance Fund will increase from $100,000 to $250,000 through December 31, 2009 and the NCUA will be consulted during the formulation of policies for the purchases of illiquid assets by the Treasury Department from credit unions and banks.