NCUA Urges Close Scrutiny of Corporates’ Capitalization Plans
The NCUA in a letter this week urged members of three bridge corporate credit unions to “carefully evaluate” options after reading the capitalization plans.
Once the plans have been approved, the three bridge corporates have to share their plans with members by May 31.
The letter urges credit unions to “be aware of any capital contribution requirements, and the potential ramifications for not contributing the minimum required amount of capital. “
“NCUA does not object to the implementation of pricing, service or membership changes by corporates placed on credit unions that do not acquire minimum capital subscriptions,’’ Scott Hunt, director of the agency’s Office of Corporate Credit Unions, wrote members of the three bridge corporate credit unions.
All corporates have to comply with the agency’s new capitalization rules, which were approved last year, by Oct. 20.