NCUA approves NAFCU-sought changes to PCA requirements
The NCUA Board during its meeting yesterday unanimously approved an interim final rule on prompt corrective action (PCA) to provide temporary regulatory capital relief to federally-insured credit unions (FICUs). Earlier this year, NAFCU urged the agency provide capital relief during the pandemic, including changes to PCA requirements.
“NAFCU supports the NCUA’s decision to adjust the prompt corrective action rules to account for current economic uncertainty and we thank NCUA Chairman Rodney Hood, and Board Members Todd Harper and J. Mark McWatters for voting in favor of the rule,” said NAFCU Director of Regulatory Affairs Ann Kossachev. “While the industry is safe and sound, it is imperative that credit unions have an environment where they can continue to focus their efforts on assisting members in financial need and managing their operations without grappling with administrative burdens.”
The interim final rule will temporarily:
- permit the board to issue an order to temporarily waive the earnings retention requirement for any federally-insured credit union that is classified as adequately capitalized; and
- permit federally-insured credit unions to submit simplified net worth restoration plans and attest that its reduction in capital has been caused by share growth resulting from a temporary condition due to the coronavirus pandemic.
These modifications will be in place until Dec. 31, 2020.
The board also introduced but did not approve an interim final rule on overdraft policy. Harper and McWatters raised concerns about the interim final rule and did not vote to approve.
NAFCU President and CEO Dan Berger has called on the NCUA to provide relief measures aimed to simplify the regulatory hurdles associated with limitations on carrying and charging off negative balances in a letter requesting additional regulatory relief due to the pandemic.
The association will continue to advocate for a change to the agency’s regulatory requirement for carrying and charging off negative balances.
In addition, the board proposed a rule on joint ownership share accounts that provides parity with changes made for banks by the FDIC in 2019. Under the rule, FICUs may use information in account records establishing co-ownership of the share account to satisfy the signature card requirement. The proposed rule will have a 30-day comment period.
The board was also briefed on the National Credit Union Share Insurance Fund (NCUSIF). NCUA staff reported that the equity ratio is currently at 1.35 percent and the normal operating level (NOL), as of December 2019, remains at 1.38 percent. The equity ratio will next be updated June 30.
The NCUSIF recorded a net income of $1.2 million for the first quarter of 2020. However, because the first quarter ended on March 31, there are no effects of the coronavirus pandemic reflected in this first quarter report.
The board will next meet June 25.
Add to Calendar 2020-06-04 14:00:00 2020-06-04 14:00:00 BSA for Seasoned BSA Officers Without question, these are challenging times for BSA/AML officers, made even more challenging by the COVID-19 pandemic. The Bank Secrecy Act (BSA) was enacted in 1970 to combat organized crime and tax evasion. In the 1980s and 1990s, its focus became money laundering and narcotics trafficking, and then, after 9/11, it became a primary weapon against terrorist financing. The BSA has now evolved to include areas such as human trafficking, elder abuse, and a host of other financial crimes. At the same time, regulatory requirements and examiner expectations have continued to expand, adding to compliance costs and burdens. New technologies have emerged that could potentially increase the effectiveness and efficiency of the system, but also create vulnerabilities that can be exploited by criminals. Meanwhile, there is a growing consensus for BSA reform within the financial services industry, among the regulators, and in Congress, but reform efforts to date have been modest, and reform bills introduced in the Congress have stalled. During this webinar, we will discuss the latest regulatory guidance, and examiner expectations in the BSA/AML area. We will also discuss emerging high-risk areas provide practical advice on how to navigate the issues and mitigate risks. This webinar will provide seasoned BSA officers with a better understanding of the challenges they face, and discuss ways to ensure that they meet those challenges. PROGRAM UNDERWRITTEN BY Key Takeaways Understand how BSA/AML requirements and examiner expectations continue to evolve and expand, increasing compliance costs and challenges Review how modern technology can increase effectiveness and efficiencies, but also create vulnerabilities Discuss the consensus for BSA reform within the financial services industry, and among regulators and legislators Identify how the COVID-19 pandemic creates its own set of challenges in the BSA/AML area Register Now$295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire credit union access to the on-demand recording until June 4, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Bank Secrecy Officers (NCBSOs) NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) BSA, AML staff Risk, audit, fraud staff Education Credits NCBSOs will receive 1.5 CEUs for participating in this webinar. NCCOs will receive 1.5 CEUs for participating in this webinar. NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Education Manager, NAFCU Learning Objectives: Understand how BSA/AML requirements and examiner expectations continue to evolve and expand, increasing compliance costs and challenges. Review how modern technology can increase effectiveness and efficiencies, but also create vulnerabilities. Discuss the consensus for BSA reform within the financial services industry, and among regulators and legislators. Identify how the COVID-19 pandemic creates its own set of challenges in the BSA/AML area. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Specialized Knowledge - Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU firstname.lastname@example.org America/New_York public
Credits: NCCO, NCRM, NCBSO, CPE
Program underwritten by Franklin Madison
Add to Calendar 2020-06-04 14:00:00 2020-06-04 14:00:00 Credit Loss in the Time of COVID-19: Methods to Better Prepare Your CU About the Webinar Credit unions have experienced unanticipated, rapid, and systemic shock. The initial losses are already staggering, with the full magnitude of the crisis yet-to-be determined. While new jobless claims may be leveling off, the number of people continuing to receive unemployment benefits could remain at record levels for many months to come. Whether responding to the current crisis environment, or planning for eventual recovery and rebuilding phases, credit unions are forced to throw out and rethink all of their previous forecasts. In this webinar, we’ll discuss: Evolving methods and variables for reasonable and supportable forecasting New tools and resources to augment internal processes and staffing levels - with ways to quickly adapt for risk assessments and mitigation Techniques and resources available to credit unions to interpret macro-economic variables into actionable intelligence on their portfolios How credit unions can assess potential losses under multiple scenarios and time horizons to help appropriately manage credit risk Watch the the Webinar On-Demand Web NAFCU email@example.com America/New_York public
Credit Unions, Consumer Lending
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