NCUA Board Finalizes Troubled Condition Rule at January Meeting
January 10 At the January 10 meeting, the NCUA Board approved the issuance of a final rule to amend the NCUA's definition of a credit union in "troubled condition," to permit NCUA or the state regulator to declare a FISCU in troubled condition. The rule clarifies that NCUA will not declare a FISCU to be in troubled condition until after an onsite contact at the credit union. Throughout the rulemaking process, NASCUS asked NCUA to reconsider issuing this rule because it forsakes the long-standing protocol that properly recognizes the state regulator's role as primary regulator for FISCUs. NASCUS did ask, however, that if the NCUA did move forward with the rule, the agency make it clear that a credit union can only be defined as troubled after an onsite examination and in consultation with the state regulator. NASCUS appreciates that NCUA made the change to the rule requiring an onsite contact.
The NCUA Board also made final:
· a rule to provide more than two-thirds of credit unions with regulatory relief by raising the definition of a “small entity” from credit unions with assets of less than $10 million to credit unions with assets of less than $50 million.
· a rule extending the eligible credit unions’ deadline for accepting a low-income designation from 30 to 90 days following notification of eligibility by NCUA.
· a rule making technical changes to bring share insurance coverage for certain types of accounts in line with the permanent $250,000 maximum limit.
The Board also approved the NCUA 2013 Annual Performance Plan. This plan establishes NCUA’s goals and priorities and identifies the two agency priority goals for 2012 as follows: monitoring and controlling risk in consumer credit unions as measured by net worth growth, the long term assets ratios and reducing losses to the National Credit Union Share Insurance Funds and dedicating appropriate resources to staff and train the new Office of National Examination and Supervision.