Final Stress Testing Rule on NCUA Board Agenda
The final stress test rule is on the April 24 NCUA board meeting agenda.
Credit Union Capital Planning and Stress Testing appears as the last item on the agenda, which was released on Thursday. The rule, introduced during the NCUA’s October 2013 board meeting, would require credit unions with more than $10 billion in assets to maintain a stress test capital ratio of at least 5%, and submit to stress testing by the NCUA.
CUNA, NAFCU and NASCUS have been critical of the proposed rule.
“The fact that Congress under the Dodd-Frank Consumer Protection and Wall Street Reform Act did not include NCUA among the agencies directed to implement capital plans or stress testing for the largest institutions they regulate supports our view that a new regulation is not the best course of action,” CUNA Senior Vice President and Deputy General Counsel Mary Dunn said.
“We have huge questions and concerns with creating a new regulation at an enormous cost to the credit union – it’s not necessary,” said Carrie Hunt, senior vice president of government affairs and general counsel at NAFCU.
The Share Insurance Fund quarterly review and a request from the $224 million CME Federal Credit Union in Columbus, Ohio to expand its community charter are also on the agenda.
A proposed rule on associational common bond requirements will be introduced at the meeting as well.