The National Credit Union Administration (NCUA) has issued a notice of proposed rulemaking to formally remove the use of reputation risk from its supervisory program. The agency had previously announced it would no longer apply reputation risk or similar concepts during its examination and supervisory processes.
According to the NCUA, the proposed rule also aims to prevent the agency from instructing credit unions to close accounts, withhold services, or terminate products based on an individual’s protected class or political views.
NCUA stated that assessing reputation risk is “subjective, ambiguous, and lacking in measurable criteria.” The agency said the proposed rule seeks to base supervision and examination programs on data-driven conclusions rather than individual perspectives.
Members of the public can review the proposed rule and submit comments through the Federal eRulemaking Portal at https://www.regulations.gov under docket number NCUA–2025–0972.
The NCUA is an independent federal agency established by Congress. It regulates, charters, and supervises federal credit unions and manages the National Credit Union Share Insurance Fund. This fund insures deposits for more than 143 million account holders in all federal credit unions and most state-chartered credit unions across the United States.
Media inquiries can be directed to OEACmail@ncua.gov or by calling 703.518.6330.
