Newsroom
NCUA's annual report highlights agency performance, NAFCU-supported wins for CUs, more
The NCUA Friday released its 2019 Annual Report, which provides credit unions with details on the agency's progress on policy initiatives, financial standing and expected challenges in the year ahead.
Of note in the report was the NAFCU-supported delay of the agency's risk-based capital (RBC) rule to January 2022. The NCUA previously approved delaying the RBC rule until Jan. 1, 2020, but the association recommended the agency pursue a longer delay and significant revisions to the rule. A NAFCU-backed provision to delay the rule by two years from its original implementation date passed the House three times in 2018.
Currently, the agency is working on a community bank leverage ratio for its RBC rule. NAFCU has recommended that the NCUA provide credit unions with parity to changes made to bank capital under the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155).
The NCUA approved several final rules in 2019, including:
- PALs: The board approved a final rule to expand its payday alternative loans (PALs) program. NAFCU and member credit unions met with the agency in May to encourage flexible parameters and provided comments on the proposal.
- Bylaws: The board approved a final rule that codifies in one place several existing NCUA legal opinions and clarifies several bylaw provisions. The rule details guidance to help credit union officials, employees, and members better understand bylaw provisions, including a credit union’s ability to limit services to a disruptive or abusive member. Legislatively, a NAFCU-sought bill to give CUs flexibility in governance policies was released last month.
- Public unit and nonmember shares: The board unanimously approved a final rule that would amend the agency's regulations to permit credit unions to receive public unit and nonmember shares up to 50 percent of its net paid-in and unimpaired capital and surplus less than any public unit and nonmember shares. NAFCU will continue to advocate for ways to provide relief to credit unions that rely on a large volume of nonmember shares.
Looking ahead, the agency is preparing to address growing cyber threats, technology-driven changes to the financial landscape, interest rate risk and liquidity risk and more in 2020. The NCUA will also continue its efforts on exam modernization.
NAFCU has consistently pushed the NCUA for updates on exam modernization and met directly with NCUA Chairman Rodney Hood and board member Todd Harper to discuss the agency’s efforts to improve exams.
The full report is available here; NAFCU in January shared its 2020 priorities with the agency.
Share This
Related Resources
Add to Calendar 2024-03-26 09:00:00 2024-03-26 09:00:00 Ensuring Safety and Soundness with AI Listen On: Key Takeaways: [03:48] The regulators are very focused on fairness in lending especially when it comes to using AI and outside models. The industry is moving very fast. [08:25] Articulating a business use case and how partnering with a Fintech can support it is the first step in having a successful conversation with your board. [10:30] Talk to your account executive at your Fintech and have them help you overcome objections. [15:01] Plan for oversight. It is not set and forget it. Your regulators are going to want to know how you are overseeing that from a 3rd party risk management standpoint. [15:47] Have a handle on your reserves and capacity for lending and start small and grow slowly. Web NAFCU digital@nafcu.org America/New_York public
Ensuring Safety and Soundness with AI
preferred partner
Upstart
Podcast
Help Ease Your Members' Loan Payment Concerns
Planning, Auto Loans, Research
preferred partner
TruStage
Blog Post
The Value of Risk Management in Cybersecurity
preferred partner
DefenseStorm
Video
Add to Calendar 2024-03-13 14:00:00 2024-03-13 14:00:00 Digital Assets in Credit Unions: What Are the AML Risks? The digital asset boom is upon us. Like it or not, you have to deal with it effectively with your members, credit unions are on the frontlines of crypto adoption. Even the NCUA has been providing more and more guidance on different aspects of digital assets. You need to be prepared. How? By understanding the core basics of digital assets (specifically cryptocurrencies) the risks that it poses to credit unions and how you can be better prepared to handle issues when they arise. In this webinar, Understanding the Digital Assets Boom, you’ll focus on the basics of digital assets, a background of cryptocurrencies and types, the regulations that are established and the proposals that are being considered and how to position yourself to understand all of these components and include them in your day-to-day roles. Key Takeaways Comprehend the basics of digital assets including cryptocurrencies Understand currently established regulations and what the future has in store, specifically in 2024 Identify and remediate issues that arise in your credit union Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until March 13, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Digital Assets in Credit Unions: What Are the AML Risks?
Credits: NCCO, NCRM
Webinar
Get daily updates.
Subscribe to NAFCU today.