The NCUA board finalized two rules at its Thursday board meeting, one on stress testing, and one on advertising.
The stress testing rule provides for tiered application of stress tests. It also permits credit unions that are required to conduct the exercises to do so on their own, rather than having them administered by NCUA.
Additionally, credit unions with less than $15 billion in assets would not be required to perform stress tests, an increase from $10 billion in the proposed rule. Credit unions that reach the $15 billion threshold would have three years to implement stress testing.
The due date for capital plan submissions remains May 31, and the final rule will become effective June 1.
The final advertising rule is designed to provide credit unions flexibility and regulatory relief in complying with NCUA’s rules and regulations.
The current rule requires federal credit unions to use one of three versions of the NCUA’s official statement in all advertising.
The final rule approved Thursday adds a fourth version, allowing a credit union to state “insured by NCUA.” It also expands a current exemption from the advertising statement requirement regarding radio and television advertisements and eliminates the requirement to include the official advertising statement on statements of condition required to be published by law.
The rule will become effective 30 days after it is published in the Federal Register.