The National Credit Union Administration (NCUA) Board approved a final rule last week to remove certain current capital planning and stress testing requirements on federally insured credit unions.
Specifically, credit unions with assets of less than $20 billion will continue to develop annual capital plans, but those plans will no longer be submitted to the NCUA each year by May 31. Credit unions with assets over $20 billion will continue to submit plans that must be approved by the agency.
Further, credit unions with less than $15 billion in assets will no longer be subject to stress-testing requirements. Those with more than $15 billion will be required to conduct stress testing, while credit unions with assets greater than $20 billion will be subject to a 5 percent minimum stress test capital ratio. Also, the NCUA will no longer be required to conduct supervisory stress tests. Credit unions will be required to conduct stress testing themselves.
This final rule will become effective June 1, 2018.
The NCUA Board, at its fourth open meeting of 2018, also revised its advertising rule. The former advertising rule required federally insured credit unions to use one of three versions of the NCUA’s official statement in all advertising.
The new rule adds a fourth version, allowing a credit union to state “insured by NCUA.” Additionally, the NCUA Board is expanding a current exemption from the advertising statement requirement regarding radio and television advertisements. In addition, it is eliminating the requirement to include the official advertising statement on statements of condition required to be published by law.
This rule will become effective 30 days after publication in the Federal Register.
The National Association of Federally Insured Credit Unions supports both of these rule changes.