Ito acknowledges changes needed to sub debt rule

(Sept. 24, 2021) NASCUS President and CEO Lucy Ito agreed with the NCUA Board for proposing the secondary capital changes to the subordinated debt rule scheduled to take effect at the first of next year. “The state system appreciates the board’s proposal to essentially make subordinated debt more accessible to LICUs,” Ito said. “That will serve to strengthen the use of subordinated debt and reduce burden on LICUs—two goals the state system has been seeking for years.”

Regarding the action on the three rules over the next three months – and particularly expansion of CUSO authorities, Ito noted that NASCUS supports the agency obtaining exam authority over technology service providers (TSPs) that provide services to federally insured credit unions — provided that any such authority requires NCUA to rely on state examinations of such service providers where such authority exists at the state level. Further, she noted, NASCUS supports efforts to strengthen state regulatory exam and supervision of third parties providing services to state-chartered credit unions.