CUNA called on the National Credit Union Administration (NCUA) this week to provide additional prompt corrective action (PCA) relief that would help credit unions remain operational in the wake of the COVID-19 pandemic.
“Since we continue to find ourselves in a unique and unprecedented situation given the ongoing pandemic, it is imperative that the agency provide additional flexibility regarding credit union capital,” the letter says.
The call came in response to the NCUA’s request for comment on the agency’s interim final rule (IFR) providing temporary PCA relief. The IFR temporarily enables the NCUA Board to waive earnings-retention requirements for any credit union classified as “adequately capitalized,” and modifies PCA regulations regarding net worth restoration plans for credit unions that become “undercapitalized.” This relief is currently in effect until March 31, 2023.
CUNA applauded these efforts but urged the NCUA to provide additional PCA relief for credit unions by:
Temporarily excluding certain assets from the net worth ratio.
Seeking statutory authority to allow the NCUA to work with credit unions facing pandemic-induced PCA requirements.
Creating a task force to eliminate outdated, unnecessary, or unduly burdensome requirements with input from credit unions and their associations.