March 22, 2021 — Last week, CUNA and state Leagues sent a letter to the NCUA Board to adopt an interim final rule to provide Prompt Corrective Action (PCA) relief to credit unions.
The temporary 2020 interim final rule (IFR) on PCA expired December 31, 2020.
This request comes at a time when credit unions have seen a significant increase in deposits due to government stimulus payments during the COVID-19 pandemic. As a result, the deposit influx has caused a decrease in the net worth ratio for many credit unions, and could in some instances, trigger Prompt Corrective Action by the regulator.
“We feel that it is only fair that the NCUA temporarily ease net-worth restrictions while the pandemic affects consumer saving and spending habits,” stated League President Ken Watts in an email to credit unions.
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