Compliance Blog

May 30, 2014
Categories: Board and Governance

NCUA’s May 2014 Report; New Merger Resource; Assessment of Fines for Late First-Quarter 2014 Call Reports

Written by Bernadette Clair, Senior Regulatory Compliance Counsel

NCUA Report. Last week, NCUA released its May 2014 report. Features in this issue include:

Office of National Examinations and Supervision Report: Board Approves Final Stress Testing Rule for Largest Credit Unions

Chairman’s Corner: Little-Known Facts About Risk-Based Capital

Office of Small Credit Union Initiatives Report: NCUA’s Second Consulting Round Nominations Due May 31

Board Perspective

Board Actions: Proposed Associational Common Bond Rule Would Increase Clarity, Flexibility

Office of Consumer Protection Report: May is Older Americans Month; Remind Members About How to Avoid “Financial Injuries”

Registration for 2014 Listening Sessions Now Open

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New Merger Resource. NCUA also released a new brochure last week entitled Truth in Mergers: A Guide for Merging Credit Unions. The brochure was prepared by NCUA’s Office of Small Credit Union Initiatives and is intended to serve as a resource to help credit unions understand merger trends, assess when merger might be necessary or in a credit union’s best interests, and to provide guidance on negotiating a merger agreement that serves a merging credit union’s best interests.  Other resources on this topic include NCUA’s Credit Union Merger and Conversion Manual and Letter to Credit Unions 10-CU-11 regarding NCUA’s Merger and Purchase & Assumption Process.

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Assessment of Fines for Late First-Quarter 2014 Call Reports. NCUA has begun the process of assessing civil money penalties on credit unions that filed 2014 first-quarter Call Reports late. NCUA’s press release indicates credit unions that filed late can expect to receive letters describing the penalties the agency is planning to assess. NCUA states it is reviewing each late filing to determine the fine that will be assessed and to determine whether there are any mitigating factors that would warrant forbearance.  Back in January 2014, NCUA issued Letter to Credit Unions 14-CU-03 warning that it would begin assessing penalties to deter late filings.