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NCUA finalizes appeals, SRC rules, proposes stress test tiers

Mon, Oct 23, 2017

The NCUA board unanimously finalized two rules at its board meeting Thursday, and issued a request for information and a proposal on stress testing. 

The proposed rule would amend agency regulations relating to capital planning and stress testing requirements. The rule would establish tiers of requirements with the full stress testing only required for credit unions with $20 billion or more in assets.

Comments on the proposal will be due 60 after its publication in the Federal Register, which is expected in the coming days.

The finalized rules are:

  • Appeals procedures (Part 746 Subpart B): The final rule establishes procedures to govern appeals to the board and will replace appeals provisions already embedded in some agency regulations provisions with a uniform, comprehensive set of procedures that will apply in cases, wherein a party is a creditor of the share insurance fund in which a decision rendered by a regional director or other program office director is subject to appeal to the board; and
     
  • Supervisory Review Committee (Part 746, Subpart A): The final rule amends and codifies NCUA procedures for appealing material supervisory determinations to the NCUA Supervisory Review Committee (SRC), expands the number of supervisory determinations appealable to the SRC and provides the opportunity for additional review by the Director of the Office of Examination and Insurance. The rule would also provide for a direct oral appeal option to the NCUA Board.

Both rules will be effective Jan. 1.

The NCUA’s request for information seeks input on plans to adopt a new standardized data format for loan, deposit and investment data. Specifically, it seeks input on new data fields for credit cards, mortgages, and student loans as well.

The meeting also included a quarterly update on the National Credit Union Share Insurance Fund, which as of Sept. 30 has an ending reserve balance of $208.2 million and an equity ratio of 1.25%.