Digital Article Repository: NCUA

NASCUS Report Article Repository: NCUA

NASCUS Issues Two Comment Letter to NCUA on PCA Relief and ONES Supervision

Over the past week, NASCUS has issued two comment letters to the NCUA regarding the following issues:

  1. NCUA’s Interim Final Rule (IFR) on PCA relief. This rule, enacted in February, is NCUA’s 2nd extension (3rd time passing) a rule to provide flexibility to adequately capitalized credit unions whose net worth declined strictly as a result of the pandemic stimulus.
  2. NCUA’s proposal to raise the threshold for ONES supervision from $10 billion in assets to $15 billion in assets. Under the proposal, all of the existing capital planning and stress testing rules would still apply to credit unions starting at $10 billion in assets, however, supervision of credit unions between $10 billion and $15 billion in assets would remain with their NCUA Regional office (and state regulator.
    • NASCUS supports the proposed change. We also recommend NCUA consider extending the exam cycle for $1 billion asset credit unions from 8-12 months to 12-18 based on the same underlying assumptions of risk profile motivating NCUA to recommend changes to the ONES program. Read the full comment letter here.