The National Credit Union Administration today announced the eleventh round of proposed regulatory changes associated with NCUA’s Deregulation Project. The project is an ongoing review of NCUA’s regulations to ensure regulations are focused on credit unions’ safety, soundness, and resilience.
With today’s announcement, NCUA is requesting comments on two proposals that would eliminate obsolete regulations, as well as unduly burdensome and duplicative requirements in the Code of Federal Regulations.
The proposals include:
The Board proposes to increase the major assets prohibition thresholds to $10 billion for management interlocks required under the Depository Institution Management Interlocks Act (DIMIA). DIMIA has three specific prohibitions, one of which relates to the asset size of the two organizations. This prohibition is intended to capture circumstances in which the two organizations are large enough that the management interlock between them may have an anticompetitive effect, even when the institutions are not in the same community. DIMIA provides that the NCUA may adjust, by regulation, the major assets prohibition thresholds to allow for inflation or market changes.
The Board also proposes to remove 12 CFR 711.6(b)(2), which outlines instances in which NCUA would presume that an interlock would not result in a monopoly or substantial lessening of competition for institutions.
Requirements for Insurance – 12 CFR 741
The NCUA Board is proposing a rule to streamline its share insurance regulations. The sections that are proposed for removal primarily refer federally insured state-chartered credit unions (FISCUs) to other NCUA regulations. These proposed changes are intended to reduce duplication.
Find a detailed summary for each proposal here.
To submit comments, type or paste the docket numbers in the search on the Federal Rulemaking Portal.
For more information, email Lisa Quaranta.
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For more information, email Lisa Quaranta.
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