LANSING, Mich. – State regulators told state chartered credit unions they will not be penalized if their net capital and earnings fall below regulatory standards solely because of costs related to NCUA’s corporate credit union bailout.
"Banks and credit unions that are otherwise considered safe and sound will not be subject to regulatory rating downgrades or additional (Office of Financial and Insurance Regulation) supervision and enforcement actions solely because of the extraordinary deposit insurance cost increases," wrote OFIR Commissioner Ken Ross in a letter to credit unions and banks.
"Institutions currently under increased OFIR supervision or enforcement actions will be closely reviewed, and, to the extent the deposit insurance cost increases further financial deterioration and increase safety and soundness concerns, additional regulatory actions may be considered in a situational basis," he wrote.
