Summary of NCUA Board Meeting- January 10, 2013
The agency voted to raise the threshold for a "small" credit union from the current $10 million in assets to $50 million in assets. This steps means these credit unions will be exempt from the interest rate risk rule and from PCA risk-based net worth requirements. Also, NCUA now has to consider whether these credit unions should be exempted in all future rulemakings, such as the pending emergency liquidity rule. About two-third of credit unions fall under the new asset threshold. CUNA and our Small Credit Union Committee urged the agency to raise the threshold and this is a very positive step in the right direction. However, we will continue to work closely with small credit unions to gauge the impact of the rule on them.
The agency also approved the final rule on the definition of "troubled condition" that allows NCUA or a state regulator to declare a federally insured state credit union with a CAMEL 4 or 5 rating is in troubled condition. We did not support this and will be monitoring its impact on dual chartering closely. Other actions today include extending the time for qualified credit unions to accept a low-income designation.
For CUNA's full summary of the NCUA Board meeting, click here.