Ohio joins CUNA and other leagues to allow NCUA to provide capital relief

Published by: Emily Leite

June 30, 2021 | Regulatory

On June 16, the League joined CUNA, AACUL, and other State Leagues in a letter to NCUA Board Members, urging the agency to ask Congress for additional authority related to Prompt Corrective Action, PCA, flexibility during crises. This tracks with the League’s own comment letter from June 17.

As credit unions continue to experience an unprecedented rise in share deposits due to COVID-19 related economic relief, PCA requirements have been difficult to navigate. Fortunately, the NCUA issued an interim final rule that eases the PCA requirements for credit unions until March 2022. However, looking beyond the COVID-19 crisis and into the future, it is important that NCUA be given more statutory authority to make changes to PCA requirements.

The League appreciates the work NCUA has done to assist credit unions whose capital levels have been put under pressure due to the COVID-19 crisis. However, there are limits to the agency’s statutory authority in this area, and credit unions and their members are adversely impacted by the inability of NCUA to provide more flexibility to otherwise healthy credit unions. We believe that the agency should pursue additional authority with Congress so that the agency has more tools in its toolbox during the next crisis.

If you have any questions about the joint letter or the League’s comment letter, please contact League Regulatory Counsel Chris Noble.

Other Movement News

Government Affairs

Advocacy on track at Churchill Downs

Ohioans and communities are best served when credit unions and regulators work together to cultivate a financial services industry that puts people first. That is why the Ohio Credit Union […]
Regulatory

League advocates for an updated CTR threshold

Constantly increasing regulatory pressures put a strain on a credit union’s resources and ability to focus on what matters most: serving members; thus, the League is always looking for opportunities […]
Member Benefits

Unlocking Strategic Insights with Peer Suite

Data-driven decision-making is paramount for credit unions striving to grow and better serve their members. Recognizing this need, the League offers Peer Suite as a powerful member benefit. This comprehensive […]