Wednesday, January 20, 2016

New Associational Common-Bond Making It Easier for CUs to Add Associations

The National Credit Union Administration (NCUA) is reporting that its new associational common-bond rule is already benefiting multiple common-bond credit unions by making it easier to add associations.

Under the new associational common bond rule, 12 type of groups are automatically recognized as valid associations. The rule also streamlined the documentation requirements for multiple common-bond credit unions to add associations to their fields of membership.

NCUA compared the number of associational groups being approved and the median number of potential members for approved associations in the five months before and five months after the rule became effective.

The number of association groups approved increased from 228 to 266, an increase of more than 16 percent.

The median potential membership size of an associational groups approved increased from 183 to 231 potential members.

NCUA further noted that in the five months after the rule became effective 227 associational groups automatically qualified for approval.

Read the story on page 9.

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