At its monthly board of directors meeting on Thursday, July 21 via live webcast, the NCUA board of directors unanimously approved two items:
- a notice of proposed rulemaking on cyber incident notification requirements; and
- a final rule to adjust the asset thresholds for assigning supervision of covered consumer credit unions to the Office of National Examinations and Supervision (ONES).
Reportable cyber incidents
The proposed rule would require a federally insured credit union to notify the NCUA as soon as possible, but no later than 72 hours, after they reasonably believe that a reportable cyber incident has occurred.
Federally insured credit unions would be required to report a cyber incident that leads to a substantial loss of confidentiality, integrity, or availability of a member information system as a result of the exposure of sensitive data, disruption of vital member services, or that has a serious impact on the safety and resiliency of operational systems and processes.
Appropriate supervisory office
A final rule amends the NCUA’s regulations to change the $10 billion asset threshold for assigning federally insured credit unions to the ONES.
Effective Jan. 1, 2023, credit unions with assets between $10 billion and $15 billion will be supervised by their appropriate regional office. All credit unions above $10 billion in assets currently supervised by ONES will continue to be supervised by that office under the final rule. Credit unions that cross the $15 billion threshold will by supervised by ONES. The rule does not alter any other regulatory requirements for credit unions covered under these regulations, according to the agency.
Mid-year budget
The board also received a briefing on the agency’s mid-year budget, with the NCUA CFO telling board members that the NCUA will have an estimated $18 million surplus in the Operating Fund at the end of the year due primarily to a surplus projection in pay and benefits and travel.
The estimates for other budget categories are materially unchanged from the approved budget, and the budget for the National Credit Union Share Insurance Fund administrative expenses is projected to have a surplus of approximately $0.6 million.
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 Sept. 22 and can be livestreamed at ncua.gov. There is no August meeting.