WASHINGTON – CUNA hopes NCUA works to implement the recommendations released this week in a report from Federal Financial Institutions Examination Council (FFIEC) agencies, part of a review of the agencies’ rules. The review was conducted as part of the Economic Growth and Regulatory Paperwork Act (EGRPRA), and while the NCUA was not required to participate, it did so voluntarily.
“We hope that NCUA will match the effort placed in generating this 430-page report for implementing the recommendations made by the report, many of which have been around for years,” said Elizabeth Eurgubian, CUNA deputy chief advocacy officer. “We are grateful that the report contains numerous CUNA-advocated recommendations.
“We trust both Congress and NCUA will move forward with haste to reduce the immense regulatory burden faced by credit unions.”
Statements by acting NCUA Chair J. McWatters in the report indicate the NCUA’s intent to proceed with the following regulatory initiatives:
- Substantially revising the risk-based net worth rule;
- Permitting credit unions to issue supplemental capital for risk-based net worth purposes;
- Revising and finalizing the proposed field-of-membership and securitization rules; and
- Modernizing the central liquidity facility, stress-testing, and corporate credit union rules.
Additionally, the NCUA recommends action by Congress as follows:
- Making recommendations regarding regulatory flexibility;
- Raising statutory limits on member business lending for federally insured credit unions;
- Providing supplemental capital authority for leverage ratio purposes to credit unions without the low-income designation; and
- Revisiting field-of-membership requirements for federal credit unions.
Additional details on the report can be found on CUNA’s Removing Barriers Blog.
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