The NCUA has unveiled two additional deregulatory proposals aimed at modernizing credit union oversight, reducing compliance burden and simplifying regulatory requirements.
In one proposal, the agency would dramatically increase asset thresholds tied to the Depository Institution Management Interlocks Act (DIMIA), raising both major asset prohibition thresholds from $1.5 billion and $2.5 billion to $10 billion.
The rule governs when management officials may simultaneously serve multiple unaffiliated financial institutions. NCUA officials said the existing thresholds, established in 1996, no longer reflect the size and structure of today's banking market. If finalized, the change would exempt hundreds of credit unions from needing regulatory approval for certain management interlocks.
According to the filing, 309 credit unions currently exceed the $1.5 billion threshold, but only 20 institutions would remain subject to the prohibition under the proposed $10 billion standard.
The proposal would also remove a regulatory presumption tied to minority- and women-controlled institutions, with the NCUA citing potential Equal Protection concerns under recent constitutional interpretations.
Separately, the NCUA proposed sweeping technical changes to its insurance regulations by eliminating numerous cross-reference provisions in Part 741 that simply point credit unions to requirements already codified elsewhere in agency rules.
The agency said the changes would not alter substantive compliance obligations, but instead make regulations easier to navigate and reduce unnecessary complexity. The proposal would remove a series of sections referencing rules on fidelity bonds, Bank Secrecy Act compliance, advertising, flood insurance, truth-in-savings, subordinated debt and other requirements already addressed in separate regulations.
Both proposals are part of the NCUA's broader Deregulation Project launched in late 2025, which has already generated dozens of proposed rulemakings designed to streamline supervision and eliminate outdated or duplicative requirements.
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