Removing Barriers Blog

CUNA requests NCUA to Remove Barriers during Review of Regulations
Posted August 03, 2015 by CUNA Advocacy

The NCUA has a policy of reviewing regulations to determine whether they should be updated, clarified, simplified or eliminated.  This process includes an annual review of one-third of the regulator’s rules, so that in a three-year period all rules have been considered.

This year CUNA has requested the NCUA to review several areas of concern to credit unions:

1. Bylaws – CUNA requests that NCUA allow for flexibility for federally-chartered credit unions to tailor their bylaws in accordance with their size and complexity, instead of mandating that all FCUs use the promulgated standard bylaws.  This will bring credit union governance into the 21st century.

2. Field of Membership – CUNA reiterated its call as expressed in previous comment letters for the NCUA to provide more flexibility on various field of membership issues as the federal charter is falling behind many state charters.  This has become a barrier needed to operate dynamic and efficient cooperative financial institutions.

3. Designation of Low-Income Status – Requested the NCUA to do more to allow credit unions to obtain the designation and requested NCUA to revise the procedure for losing the designation to allow more certainty for credit unions.

4. Prompt Corrective Action – CUNA reiterated its concern on the Risk-Based Capital 2 proposal and continued the concern over the statutory authority to set a risk-based standard for determining whether a credit union is well-capitalized, as opposed to adequately capitalized.  Specifically, it called for the elimination of the capital adequacy requirement. CUNA continues to believe that the proposal is a solution to solve a problem that does not exist in the credit union system.  

Other areas addressed included:  OREO properties; Executive Compensation in connection with loan growth; Loan Participations; Check-Cashing for Non-Members; Mergers and Conversions; and other technical areas.

A copy of the letter can be viewed here.