Following the regulatory enhancements provided by the CARES Act and changes to NCUA's regulations, the Central Liquidity Facility experienced a significant increase in its membership and borrowing capacity. New memberships have added $945.8 million in additional subscribed capital stock to the facility.
Kyle Hauptman, nominated by the president to serve on the NCUA board, will appear before the Senate Banking Committee July 21. The hearing is scheduled to begin at 10 a.m. (ET), and will be livestreamed on the committee’s website.
NCUA’s latest Letter to Credit Unions (20-CU-21) announced that the agency is in the process of reinstating rural districts for credit unions that had these removed due to the American Bankers Association (ABA) lawsuit.
CUNA filed a comment letter in support of NCUA’s proposed rule on joint ownership for share accounts. The proposal addresses the requirement for separate joint account insurance that each co-owner of a joint account has personally signed a membership card or account signature card.
The NCUA and CFPB released their Spring 2020 rulemaking agendas. The agendas cover regulatory issues the agencies expect to work on in the coming months, but are mostly predictions and can be amended at any time.
CUNA generally supports NCUA’s proposal on subordinated debt but offered several suggestions to improve the rule.The proposal would permit low-income designated, complex and new credit unions to issue subordinated debt for purposes of regulatory capital treatment.
CUNA continued its ongoing, pandemic-related engagement with NCUA with a letter to Chairman Rodney Hood containing policy recommendations and comments, including delaying the RBC rule, extending Troubled Debt Restructuring and additional overdraft flexibility.
CUNA supports NCUA's PCA relief measures, one that allows credit unions more flexibility if they fall to the PCA “adequately capitalized” level due to unhistorical, abnormal share deposit influxes and one involving net worth restoration plans.
CUNA supports NCUA’s temporary changes to the Central Liquidity Facility and is continuing to pursue additional statutory changes to the CLF with Congress, CUNA wrote to NCUA Monday in response to NCUA’s interim final rule making the CLF changes.
The NCUA Board received two briefings, finalized technical amendments to the agency’s regulations and issued a request for information on future examinations at its meeting Thursday. The board pulled the expected risk-based net worth proposal off the agenda.