WASHINGTON The National Credit Union Administration last Thursday issued a proposal that would reduce regulatory requirements for well-capitalized, well-managed credit unions.
The agencys proposal would apply to federal credit unions that have reserves equal to 9% of assets, and Camels ratings of 1 or 2 in consecutive examinations. If a credit union meets one of these criteria, it could apply for streamlined regulatory treatment.
Under the streamlined rules proposed, credit unions would be granted more flexibility in various areas, such as managing their investment portfolios and setting maturity rates on some bonds. The proposal would reduce reporting requirements on asset liability management, and loosen limits on which organizations credit unions may donate to. And it would allow well-capitalized, well-managed credit unions to purchase auto, credit card, mortgage, business, and student loans from other credit unions more freely.
The agency estimated that nearly 4,000 credit unions, or 63%, would be eligible for the streamlined treatment. Of these, 55% have less than $10 million of assets.