PCA interim final rule on NCUA’s April 22 agenda

The NCUA board will be briefed on an interim rule involving Prompt Corrective Action (PCA) at its April 22 meeting. CUNA and Leagues have heavily engaged NCUA on the need for PCA flexibility, and NCUA Chairman Harper indicated relief would be coming shortly.

NCUA approved the interim final rule last week via notation vote, and published it in the Federal Register April 19.

The rule:

• Temporarily enables the NCUA Board to issue an order applicable to all federally insured credit unions to waive the earnings-retention requirement for any federally insured credit union that is classified as adequately capitalized.
• Modifies these regulations with respect to the specific documentation required for net worth restoration plans (NWRPs) for federally insured credit unions that become undercapitalized.

The meeting will be conducted via live audio stream starting at 10 a.m. (ET), and the stream will be available at NCUA.gov.

The complete April 22 agenda is:

• Board briefing, cybersecurity update.
• Board briefing, interim final rule, Part 702, Capital Adequacy; Prompt Corrective Action.