In a July 1 letter to credit unions NCUA provided information on its purchase and assumption (P&A) and merger process and detailed the criteria the agency uses to evaluate P&As and mergers. CUNA's merger task force sought this guidance from NCUA.
NCUA will allow credit unions in financial distress to undertake voluntary liquidation, involuntary liquidation, an involuntary liquidation followed by a P&A, or voluntary, unassisted supervisory, or assisted mergers. NCUA also stated that its role in voluntary and unassisted supervisory mergers is mainly supervisory. However, the agency assumes a much greater role in assisted mergers and P&As. That role includes identifying and selecting the failing credit union's "continuing credit union partner."
Read NCUA's guidance Letter to Credit Unions
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4 years ago
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