NCUA intends to substantially revise the risk-based net worth rule and permit credit unions to issue supplemental capital for risk-based net worth purposes, according to comments by agency Acting Chairman Mark McWatters contained in a joint report by federal regulators sent to Congress this week.
Additionally, McWatters wrote in the “NCUA Report” section of the Joint Report to Congress: Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA), published by the members of the Federal Financial Institution Examination Council (FFIEC), NCUA also plans to revise and finalize the proposed field of membership and securitization rules, and; modernize the agency’s rules with respect to the Central Liquidity Facility, stress-testing, and corporate credit union rules (among others). The changes will be made, he wrote, “without limitation.”
Additionally, McWatters stated, all of these changes will be “in strict compliance with the Federal Credit Union Act and other applicable law.” The acting chairman also noted that the agency will “work with Congress to update the Federal Credit Union Act (FCUA to facilitate credit union operations and growth so as to ensure the safety and soundness of the NCUSIF.”
The agency is not required under the law to participate in the EGRPRA process (as are the Federal Reserve, OCC and FDIC). However, the report notes that the current NCUA board “embraces the objectives of EGRPRA and in keeping with the spirit of the law, the Board has participated in the review process. (The NCUA also participated in the first EGRPRA review, which ended in 2006).”
NASCUS has participated in all four of the recent comment calls made under EGRPRA from 2014-15.