MBL rule on NCUA Board agenda
Feb. 11, 2016 -- Consideration of a final rule affecting credit union member business lending is on the agenda for the NCUA Board’s regular monthly meeting next week (Feb. 18) in Washington.
The proposed rule – which garnered more than 3,000 comment letters (including a significant number from bankers in opposition) – represented a potentially dramatic change in the agency’s approach to regulating MBLs. Under the proposal, NCUA would move to “principle-based” regulation as opposed to the existing MBL rule, which contains thresholds and waivers that NCUA characterizes as “prescriptive.” The proposed rule would eliminate most of the existing regulatory thresholds and limits in Part 723, replacing those provisions with expanded requirements for policies, procedures, and oversight by credit union management and credit union directors.
In its comments, NASCUS noted that while the proposal is worthy of support, the agency should consider a number of changes that would recognize the role of state-chartered credit unions, and promote the health of the credit union system overall.