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.