NCUA Revises Advertising Reg., Changes Capital Planning & Stress Test Posted by Association of Vermont Credit Unions on 9:38 AM

The NCUA Board convened yesterday and approved two items, as reported on the Agency's website.

Final Stress-Testing Rule Tailors Requirements to Covered Credit Unions’ Size
Capital planning and stress testing requirements for credit unions >$10B provide some regulatory relief under a fi
nal rule (Part 702) approved by the Board. The rule requiring capital planning and stress testing for federally insured credit unions with assets of $10 billion or greater anticipated credit unions being allowed to conduct stress tests once the NCUA had completed three stress tests. The Board approved a proposed rule making changes at its October 2017 open meeting.  Under the final rule approved yesterday, credit unions with assets of less than $20 billion will continue to develop annual capital plans, but those plans will no longer be submitted to NCUA each year by May 31. Credit unions with assets greater than $20 billion will continue to submit plans that must be approved by the agency.

Under the final rule, NCUA will no longer conduct supervisory stress tests. Credit unions subject to the rule will conduct stress testing themselves. NCUA has reserved the right to conduct stress tests on covered credit unions if it deems such action necessary.

Credit unions with assets of less than $15 billion will no longer be subject to stress-testing requirements. Credit unions with assets greater than $15 billion will be required to conduct stress testing, though credit unions with assets greater than $20 billion will be subject to a 5 percent minimum stress test capital ratio.

The final rule is available online and becomes effective June 1, 2018.

Rule Provides Options when using NCUA’s Official Advertising Statement
Credit unions will gain an added measure of flexibility and regulatory relief in complying with the NCUA’s advertising rule under a final amending rule (Part 740) approved by the Board.

The advertising rule had required federally insured credit unions to use one of three versions of the NCUA’s official statement in all advertising. Today’s approved rule adds a fourth version, allowing a credit union to state “insured by NCUA.” To provide additional regulatory relief, the Board is expanding a current exemption from the advertising statement requirement regarding radio and television advertisements and eliminating the requirement to include the official advertising statement on statements of condition required to be published by law.

The final rule is available online and becomes effective 30 days after publication in the Federal Register.