Onsite Coverage: NCUA to Consider Raising Small CU Asset Definition Above $10 Million
NASHVILLE, Tenn. — The NCUA will reconsider the $10 million threshold that currently defines small credit unions, which are exempt from many regulations and eligible for assistance from the Office of Small Credit Union Initiatives, Chairman Debbie Matz announced Thursday at the NAFCU Annual Conference.
The agency is currently conducting analysis to determine the new threshold size, and expects to roll out the recommendation in time for the September board meeting, Matz said.
The NCUA said in a recent letter to credit unions that those with fewer than $10 million in assets will from now on only be subjected to a 40-hour examination.
Matz said if the small credit union threshold is raised, credit unions over $10 million may not get the 40-hour exam, but will benefit from other regulatory exemptions.
Regardless of whether more credit unions will fall under the OSCUI umbrella, Matz said the office is working to reach a wider audience by utilizing technology such as webinars, DVDs and phone calls.
The goal is to reduce the time examiners currently spend assisting small credit unions, which is partly to blame for a disproportionate amount of examination resources spent on small credit unions, the NCUA board chair said.
Instead of looking to examiners for assistance, small credit unions should work with the OSCUI instead, she said.
During her general session address at the Nashville conference, Matz also said the board will also reconsider a number of regulations this fall after credit unions raised the issues during recent NCUA Listening Sessions.
They include the potential to count video teller machines as service facilities in meeting field of membership expansion requirements, dropping the personal guarantee for member business loans in certain cases, allowing credit unions to purchase Treasury Inflation Protected Securities, increasing the maximum application fee for short term loans and expanding the definition of districts for credit unions that serve rural areas.