Fixed-assets cap, stress testing deadlines addressed in final rules
Starting Jan. 1, 2016, federal credit unions will not be subject to the current 5% cap on fixed assets. That rule, along with a final rule involving shifting the stress test and capital planning schedules, were approved by the National Credit Union Administration board Thursday.
The new fixed-assets final rule not only will remove the 5% threshold, it will also eliminate a waiver process, and establish a six-year time period for partial occupancy of premises.
“We’re pleased the NCUA board listened to CUNA and credit unions by removing the 5% fixed-assets threshold,” said Jim Nussle, president/CEO of CUNA. “CUNA has long advocated for this change which will allow credit unions more flexibility in deploying resources to benefit their members. However, we will not have a complete picture of the true regulatory relief until NCUA provides credit unions with guidance.”
The NCUA’s Office of Examination and Insurance has drafted a supervisory letter that will provide guidance to examiners to address safety and soundness compliance.
“This supervisory guidance will not only help with ensuring examination consistency, it will provide exam scoping policies and procedures and expectations for safe and sound fixed asset management,” said D. Scott Neat, director of the NCUA’s Division of Supervision. “It will be provided prior to the rule’s effective date, likely sometime in September.”continue reading »