Mon, Apr 27, 2015
The NCUA Board proposes to amend its Regulatory Flexibility Act (RFA) definition of small entity increasing the threshold from $50 million in assets to $100 million in assets.
The RFA requires federal agencies to determine whether a proposed or final rule would have a significant economic impact on a substantial number of small entities. If a substantial number of small entities would be impacted, the RFA requires agencies to engage in a small entity impact analysis, known as an initial regulatory flexibility analysis (IRFA) for proposed rules and a final regulatory flexibility analysis (FRFA) for final rules.
This rulemaking effort is narrower in scope than NCUA’s 2013 final rule that changed the asset threshold for the definition of small entity to the current $50 million from $10 million. That final rule changed the definition of “complex” credit union for prompt correction action in Part 702 and revised the threshold for credit unions subject to NCUA’s interest rate risk rule to $50 million. NCUA’s current risk-based capital proposal would change the definition of complex to $100 million.
The other impact of this rule is on the asset threshold for obtaining services from NCUA Office of Small Credit Union Initiates (OSCUI) would be credit unions with $100 million or less in assets.
This proposal would amend Interpretive Ruling and Policy Statement (IRPS) 87-2, as amended by IRPS 03-2 and 13-1 and makes a technical change to subpart B of Part 791 of NCUA’s regulations.
Comments are due to CUNA by May 1, 2015 and to NCUA by May, 4, 2015.