Thursday, June 15, 2017

McWatters: Closing the Stabilization Fund and Reg Relief Are Top Priorities

Credit unions can expect more regulatory relief and streamlined operations from the National Credit Union Administration (NCUA) in the future, Acting Board Chairman J. Mark McWatters said at the annual conference of the National Association of Federally-Insured Credit Unions.

According to the press release, McWatters stated he wants the Board to revisit the risk-based capital and stress testing rules.

Earlier this week, The United States Department of the Treasury (Treasury) recommended raising the asset threshold for credit unions subject to stress testing rule from $10 billion to $50 billion. Also, Treasury recommended that NCUA either eliminate the risk-based capital requirement or raise the asset threshold for credit unions subject to the risk-based capital rule from $100 million to $10 billion.

Acting Chairman McWatters told the attendees that closing the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) is a top priority. This would allow the agency to return surplus funds to federally-insured credit unions in 2018. A plan for closing the TCCUSF is expected within weeks.

Other areas that McWatters would like to see the agency address include cyber security, fighting fraud, and identifying ways to help small and low-income credit unions to thrive.

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