The NCUA should streamline its merger process and defer to state officials, when appropriate, credit union groups told the agency this week.
When two federally insured, state-chartered credit unions (FISCUs) merge, the NCUA should simply study whether the deal would pose a risk to the Share Insurance Fund (NCUSIF), asserted Sarah Stevenson, vice president of regulatory affairs at the National Association of State Credit Union Supervisors (NASCUS).
“In the absence of any clear and compelling connection between the activity being regulated and risk to the NCUSIF, NCUA should always defer to laws applicable to each state,” she said.
Stevenson’s comments were among those submitted to the NCUA as part of its annual regulatory review. Each year, the agency solicits comments on one-third of its rules, with this year’s submissions due on August 16.
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