NASCUS: Proposal demands careful review

(Jan. 15, 2021) NASCUS President and CEO Lucy Ito urged careful review of the proposal by the entire credit union system – and noted that federal law requires the agency to consult with the state system. “The FCU Act requires NCUA to consult and cooperate with state supervisors on prompt corrective action and capital adequacy issues, and we expect the agency to meet its lawful obligation,” she said. “Both approaches outlined by NCUA represent significant changes to how federally insured credit unions will meet capitalization requirements. The approaches include trade-offs that credit unions must weigh thoroughly, but also offer the potential for significant flexibility. NASCUS urges all of its members, both regulators and credit unions, to study this proposal carefully and offer input to us as we prepare our own feedback to the agency on the proposal.”