ALEXANDRIA, Va. (1/16/15)--A proposal to amend a credit union capital planning and stress-testing rule is open for comment. The National Credit Union Administration Thursday proposed changes to the existing rule to align the credit union rule with recent bank regulatory changes.
In April 2014, the NCUA board approved a final rule requiring capital planning and stress testing for federally insured credit unions with assets of $10 billion or more. Capital planning requires covered credit unions to assess their financial condition and risks over a planning horizon and must consider both expected and unfavorable conditions.
At the time the NCUA issued its final rule, the banking agencies were scheduled to provide scenarios for their regulated institutions by Nov. 15 each year. The banking agencies subsequently moved their scenario release dates to Feb. 15. The NCUA proposal would align the timing of credit union scenario releases with those of the banks.
The proposed effective date is Jan. 1, 2016.