The National Credit Union Administration (NCUA), a U.S. government agency that regulates and supervises federal credit unions, has announced the fourth round of proposed regulatory changes as part of its ongoing Deregulation Project. The NCUA oversees the insurance fund for credit unions and provides regulatory guidance to ensure deposit safety, according to its official website.
The new proposals aim to clarify existing agency guidance or remove requirements in the Code of Federal Regulations that are considered burdensome or duplicative. Stakeholders are encouraged to review these proposals and submit comments.
One proposal would remove the requirement for credit union boards to develop a written plan regarding public unit and non-member shares if those funds, combined with borrowings, exceed 70 percent of paid-in unimpaired capital and surplus. This change would allow Federally Insured Credit Union (FICU) boards more flexibility in managing their funding sources within current aggregate limits.
Another proposal suggests eliminating the regulation that requires FICUs with supplemental share insurance coverage to notify members 30 days in advance if they plan to end this coverage. Under the proposed change, notification would still be required but without a specific time frame.
A third proposal involves removing maximum borrowing authority from NCUA regulations for obtaining and maintaining federal share insurance with the Share Insurance Fund. If adopted, this would eliminate borrowing limits for Federally Insured State Chartered Credit Unions (FISCUs), making them subject only to applicable state laws. Statutory borrowing limits for Federal Credit Unions (FCUs) would remain unchanged.
The final proposal calls for eliminating a disclosure requirement related to share insurance on non-member accounts at FISCUs. Currently, FISCUs must identify such accounts on reports and notify account holders in writing that their accounts are not insured by the Share Insurance Fund. The Board considers this requirement redundant because similar disclosures are already mandated as part of agreements for maintaining federal share insurance.
The NCUA was established by Congress in 1970 to oversee the National Credit Union Share Insurance Fund [source]. The agency charters new credit unions, manages performance reports, and serves federally insured institutions nationwide [source]. Its headquarters is located in Alexandria, Virginia [source].
Stakeholders can submit comments on these proposals through the Federal Rulemaking Portal. More information about the Deregulation Project is available at https://ncua.gov/news/deregulation-project.
For media inquiries: OEACmail@ncua.gov or 703.518.6330
