Giving credit where credit is due

I figured this week I would take a different tone compared to my last blog. I mean come on, should a person really be that fired up over a simple name change. Let’s be honest, with how the CFPB has operated over the last few years I really shouldn’t be that surprised. No, this week I want to shine the light on the light guy – the good ole NCUA.

Back on April 19, the NCUA held its fourth board meeting for 2018. In that meeting the Board approved two pretty significant items. The first rule that they approved was in regard to the stress testing rules for federally insured credit unions. Under this new rule, credit unions with less than $20 billion in assets will still be required to develop annual capital plans, but they will no longer have to submit those plans to the NCUA each year by May 1. Those above the $20 billion mark will still have to submit those plans. The rule also removes the requirement that the NCUA will have to conduct supervisory stress tests. Instead, credit unions that are subject to the rule will conduct those tests themselves. The caveat there is that the NCUA reserves the right to conduct a stress test if they deem it is necessary. The final rule also states that credit unions with less than $15 billion in assets will no longer be required to conduct stress testing. Those above the $15 billion mark will be required to conduct a stress test, and those that are above $20 billion will be subject to a 5% minimum stress test capital ratio.

 

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