Rule needed to protect CUs from higher asset-size thresholds due to COVID
NCUA should publish an interim final rule to allow credit unions to use 2019 asset-size data for regulatory requirements through the end of 2021, CUNA President/CEO Jim Nussle wrote to the NCUA board Tuesday.
Federal banking agencies passed an interim final rule allowing banks, through the end of 2021, to use asset data as of Dec. 31, 2019 to determine applicability of certain assert-based thresholds.
“CUNA strongly urges the NCUA to address this issue as the banking agencies have and publish an interim final rule for credit unions that will allow them to use 2019 asset-size data for regulatory requirements through the end of 2021, so they will not be required to comply with new regulatory or reporting requirements until the beginning of 2022, at the earliest,” Nussle wrote.
The letter notes that credit unions, like banks, have experienced balance sheet growth as a result of the pandemic and the government’s response, and a regulator response is needed.
“Due to the COVID-19 pandemic and balance sheet growth as a result of new COVID-related policies, there are credit unions that could be subject to additional regulatory or reporting requirements in 2021 because they are temporarily pushed over an asset-size threshold for compliance,” it reads.