ALEXANDRIA, Va. After months of negative comment letters from credit union trade groups, NCUA is expected to impose a final rule on capital planning and stress testing at its board meeting April 24.
In October, NCUA proposed to require all federally insured credit unions with assets of more than $10 billion to develop and maintain capital plans, and undergo annual stress tests.
CUNA and NAFCU filed comment letters with the regulator asserting the rule is not needed.
CUNA’s letter said it favors NCUA guidance instead of the proposed rule. NAFCU argued the new rule needs to be modified if it is adopted.
The National Association of State Credit Union Supervisors (NASCUS) issued a warning stating if results of proposed mandatory annual stress tests are made public, they could endanger the National Credit Union Share Insurance Fund by mistakenly promoting runs.
The stress test rule is expected to be the most closely watched agenda item on the board's agenda.
Other matters on the agenda include: the Share Insurance Fund’s quarterly review; a request from CME FCU, Columbus, Ohio, to expand its community charter; a proposed rule on Appendix B of Part 701, Associational Common Bond Requirements; and, share insurance appeals.
