ALEXANDRIA, Va. ― NCUA has announced the eleventh round of its proposed regulatory changes as part of its Deregulation Project.
The agency described the project an ongoing review to ensure regulations are “focused on credit unions’ safety, soundness, and resilience.”
The Proposals
“The Board proposes to increase the major assets prohibition thresholds to $10 billion for management interlocks required under the Depository Institution Management Interlocks Act (DIMIA),” the agency said. “DIMIA has three specific prohibitions, one of which relates to the asset size of the two organizations. This prohibition is intended to capture circumstances in which the two organizations are large enough that the management interlock between them may have an anticompetitive effect, even when the institutions are not in the same community. DIMIA provides that the NCUA may adjust, by regulation, the major assets prohibition thresholds to allow for inflation or market changes.”
NCUA said it is also proposing to remove 12 CFR 711.6(b)(2), which outlines instances in which NCUA would presume that an interlock would not result in a monopoly or substantial lessening of competition for institutions.
Requirements for Insurance – 12 CFR 741
In addition, the NCUA Board is proposing a rule to streamline its share insurance regulations. The sections that are proposed for removal primarily refer federally insured state-chartered credit unions (FISCUs) to other NCUA regulations. These proposed changes are intended to reduce duplication.
Additional Info
NCUA said a detailed summary for each proposal here.
