Comments Due to NAFCU: NCUA - Capital Planning and Supervisory Stress Testing

Calendar Thumbnail - Comments Due to NAFCU

December 15, 2017

The National Credit Union Administration (NCUA) published a proposed rule amending its capital planning and stress testing regulations to allow credit unions to perform their own stress testing and incorporate the results in their capital plan submissions.  NAFCU would like to highlight the following:

  • Under the proposal, covered credit unions would be subject to tiered regulatory requirements tailored to reflect their size, complexity, and financial condition. Covered credit unions at or above $10 billion in total assets, and that have undergone fewer than three capital planning cycles, would not be subject to stress testing, while credit unions that have $20 billion or more in total assets would be subject to largely the same requirements contained in current Subpart E of Part 702.
  • The proposal would eliminate the requirement for a covered credit union to seek NCUA approval before conducting the stress test on its own. However, NCUA would reserve the right to conduct the stress tests on any covered credit union at any time.
  • The proposed rule adopts an incremental approach to capital planning review that would adjust requirements for a covered credit based on asset size.

Regulatory Alert: 17-EA-28: NCUA - Capital Planning and Supervisory Stress Testing (member-only; login required)

Take the NAFCU Member Survey for Comments (Comments due to NAFCU by December 15, 2017)

NAFCU will send comments on behalf of its members to the NCUA by their deadline (December 29, 2017).