Interim final rule provides CUNA-League sought PCA flexibility
The NCUA Board will publish an interim final rule Monday making two temporary changes to its prompt corrective action (PCA) regulations to help ensure that federally insured credit unions remain operational and liquid during the COVID-19 pandemic. A similar rule expired at the end of 2020, and CUNA and Leagues have called on NCUA to reinstate PCA flexibility.
The first change temporarily enables the NCUA Board to issue an order applicable to all federally insured credit unions to waive the earnings-retention requirement for any federally insured credit union that is classified as adequately capitalized.
The second modifies these regulations with respect to the specific documentation required for net worth restoration plans (NWRPs) for federally insured credit unions that become undercapitalized.
These temporary modifications will be in place until March 31, 2022.
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