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The NCUA Board Thursday finalized emergency-merger rule changes, amending the definition of "in danger of insolvency" in the chartering and field-of-membership manual. While it supports the modifications overall, NAFCU had hoped the rule would provide more transparency and a more streamlined process for smaller credit unions.

The rule, finalized as proposed in July, aims to give the agency more flexibility in identifying credit unions that may be in need of an emergency merger. The rule adds a fourth category to the "in danger of insolvency" definition and, for two of the three current categories, lengthens by six months the timeframe the agency has to forecast a credit union's future insolvency when a predictive assessment of the credit union's declining net worth is in play.

The board today also adopted some technical changes necessary to align with the agency's restructuring. Specifically, the board amended the NCUA's existing regulations to reflect the creation of the Office of Credit Union Resources and Expansion (CURE) and reorganization of the Office of Consumer Financial Protection and Access (OCFPA).

The NCUA Board is scheduled to hold its next open meeting Jan. 25.