NCUA Capital Planning and Stress Testing Rule - NASCUS Developing Comments Now
October 23 The National Credit Union Administration (NCUA) has issued a notice of proposed rulemaking that would require federally insured credit unions with assets of $10 billion or more to develop capital plans and undergo annual stress tests conducted by the NCUA. These requirements would be added to 12 CFR Part 702 as an added Subpart E, “Capital Planning and Stress Testing.” FISCUs are required to comply with Part 702 pursuant to section 216 of the Federal Credit Union Act and Part 741.3 of NCUA's Rules and Regulations.
Although credit unions were not explicitly included in the Dodd-Frank mandate, NCUA has nevertheless proposed a rule to apply a stress testing framework to federally insured credit unions with assets of $10 billion or more. NCUA points out that the four credit unions in this category have assets totaling nearly ten times the balance of the National Credit Union Insurance Fund, and that safe and sound capital planning in these institutions is therefore essential to the health of the credit union system as a whole. See NASCUS Summary here.