League argues for corporate credit union flexibility
Published by: Emily Leite
August 5, 2020 | Government Affairs, Regulatory
When corporate credit unions can operate effectively and efficiently, it builds greater confidence in the safety and soundness of the entire credit union system. That’s why the League argued for reasonable regulatory flexibility in response to a proposed National Credit Union Administration (NCUA) rule, which would update, clarify, and simplify several corporate credit union regulations, including:
- Permitting a corporate credit union to make a minimal investment in a credit union service organization (CUSO) without the CUSO being classified as a corporate CUSO under the NCUA’s rules;
- Expanding the categories of senior staff positions at member credit unions eligible to serve on a corporate credit union’s board;
- Amending the minimum experience and independence requirement for a corporate credit union’s enterprise risk management expert; and
- Requiring a corporate credit union to deduct certain investments in subordinated debt instruments issued by natural person credit unions.
The League will continue to advocate for federal transparency and flexibility that appropriately balances the Movement’s regulatory burden.
You can read the full comment letter or contact League Regulatory Counsel Chris Noble if you have questions or concerns about the NCUA’s proposed corporate credit union rule.
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