Comments Sought on NCUA’s PCA Interim Final Rule
In the Association’s continuing effort to represent the interests of member credit unions before the National Credit Union Administration (“NCUA”), your input on a pending proposal is requested by way of an Association survey.
NCUA has recently issued an Interim Final Rule on COVID-19 Related Prompt Corrective Action (“PCA”) regulatory relief. The Interim Final Rule has an effective date of April 19, 2021 and is scheduled to expire on March 31, 2022. The new rule is substantially similar to NCUA’s May 2020 COVID-19-related PCA regulatory relief interim final rule, which is available HERE.
The Interim Final Rule: 1) allows the NCUA Board to issue an order to temporarily reduce the normally applicable PCA earning retention requirement for adequately capitalized federally insured credit unions (“FICUs”) (which are normally required by NCUA’s PCA rules to make transfers to their retained earnings in amounts equivalent to a least 1/10th of their total assets each quarter until they are “well capitalized”); and 2) allow adequately capitalized FICUs that have had a decrease in their net worth ratios to submit streamlined Net Worth Restoration Plans so long as the decrease in their net worth ratios’ resulted primarily from share growth that is a temporary condition related to COVID-19.
The Association’s survey seeking your views on the PCA Interim Final Rule is available HERE. Please respond no later than Wednesday, June 16th, 2021.
The full NCUA Interim Final Rule on PCA regulatory relief is available HERE.« RETURN TO ALL NEWS