NCUA extends COVID relief, approves subordinated debt rule

The NCUA board extended its previous COVID-19 relief through the end of 2021, approved its subordinated debt final rule and proposed an overdraft rule, among other items on its agenda Thursday. The board will meet again Friday to vote on the agency’s proposed budget.

“We thank NCUA for taking actions today that will help credit unions increase services to members hit hard by the pandemic,” said CUNA President/CEO Jim Nussle. “The subordinated debt rule will go a long way toward helping credit unions raise additional capital if needed, and the overdraft proposal would provide additional flexibility for credit unions to work with their members.”

Specifically, the extended COVID-19 relief:

• Temporarily raises the maximum aggregate amount of loan participations that a federally insured credit union may purchase from a single originating lender without seeking a waiver from the appropriate Regional Director to the greater of $5 million or 200% of the federally insured credit union’s net worth;

 

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