At its February board of directors meeting on Thursday via live webcast, the NCUA board of directors unanimously approved two items:
- a notice of proposed rulemaking for assigning certain federally insured credit unions to the appropriate NCUA supervisory office; and
- an interim final rule that extends two temporary changes to the NCUA’s prompt corrective action regulations.
NPR on threshold for determining the appropriate supervisory office
The notice of proposed rulemaking regarding the threshold for determining the appropriate supervisory office would amend the agency’s regulations to change the $10 billion asset threshold for assigning federally insured credit unions to the Office of National Examinations and Supervision, known as ONES.
The proposed rule would change the asset threshold used to determine when a consumer credit union comes under the enhanced supervision of the NCUA’s Office of National Examinations and Supervision.
Once published in the Federal Register, comments will be accepted for 60 days.
Interim final rule on prompt corrective action
The interim final rule on prompt corrective action would extend certain regulatory requirements currently in effect to help ensure that federally insured credit unions remain operational and liquid during the COVID-19 pandemic.
The interim final rule renews two temporary changes to the NCUA’s prompt corrective action regulations:
- it amends these regulations to temporarily extend the board’s ability to issue an order applicable to all federally insured credit unions to waive the earnings retention requirement for any federally insured credit union that is classified as adequately capitalized; and
- extends a provision that modifies the specific documentation required for net worth restoration plans for federally insured credit unions that become undercapitalized.
These temporary modifications will be in place until March 31, 2023.
Share Insurance Fund
The board was also briefed on the performance of the Share Insurance Fund during the fourth quarter of 2021. The fund reported a net income of $184.5 million and a net position of $20.6 billion for 2021. Additionally, the Share Insurance Fund’s assets rose to $20.7 billion at the end of the year from $19.1 billion at the end of 2020, according to the agency.
“After another challenging year, the Share Insurance Fund continues to perform well and remains on a solid footing,” said Todd Harper, NCUA chairman. “Overall, the credit union system has also, thus far, withstood the pandemic’s evolving economic fallout. This is a testament to the strength of the credit union system going into the pandemic and the skillful management of credit union CEOs, boards of directors, and staff over the last two years.”
The full results of the meeting can be accessed on the NCUA website. The next board of directors meeting is at 10 a.m. on March 17 and can be livestreamed at ncua.gov.