Removing Barriers Blog

NCUA Pens Letter to Credit Unions on Prompt Corrective Action Regulatory Relief Measures in Response to the COVID-19 Pandemic
Posted June 10, 2020 by dyi

The NCUA Board wrote a letter to credit unions on prompt corrective action regulatory relief measures in response to the COVID-19 pandemic where some credit unions may experience a temporary reduction in earnings and capital due to their response efforts.

The letter discusses the administrative order that reduces the amount of earnings retention required for credit unions classified as adequately capitalized. Additionally, it also talks about credit unions’ authority to submit a streamlined net worth restoration plan (NWRP) if their net worth ratio declined to undercapitalized predominantly due to temporary share growth during the COVID-19 pandemic.