The National Credit Union Administration on Thursday proposed rules designed to increase regulatory sanctions as a credit union's capital decreases.

The proposal, which mirrors the banking agencies' "prompt corrective action" rules, mandates how regulators must respond when a federally insured credit union becomes undercapitalized. The agency's three-member board set a 90-day comment period for the proposal. The proposed rule was the third of six that the NCUA must issue to enforce the credit union law enacted in August.

The NCUA also adopted rules governing the ability of credit unions to share executives with a bank or thrift, make charitable contributions, and impose liens on members with unsecured debt.

- Scott Barancik

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.