ALEXANDRIA, Va.–NCUA said it is inviting credit union stakeholders to read and comment on a package of regulatory reforms recommended by an internal agency task force.
NCUA said the task force has recommended changes that would be adopted in the coming four years to “clarify, improve, revise, or eliminate regulations.” The NCUA Board approved posting the proposal in the Federal Register for a 90-day comment period; a copy of that notice is available on the agency’s website here.
“The need for a forward-looking regulatory structure that offers meaningful relief without undermining safety and soundness is quite clear, and these recommendations serve as a roadmap for a thoughtful process to achieve that goal,” NCUA Board Chairman J. Mark McWatters said in a statement. “This undertaking represents a more significant and comprehensive regulatory relief effort than the agency has pursued in the past. We initiated this effort in the spirit of the administration’s executive order requiring regulatory review, even though the NCUA is not covered by the order.”
“We have made significant progress in the area of regulatory relief in the years following the financial crisis, and this proposal takes that effort to another level,” added board member Rick Metsger. “A great deal of work went into developing these recommendations. The task force scoured all the agency’s regulations, looking for ways to make improvements. I hope credit union stakeholders will take time to review this plan carefully and offer comments.”
The agency’s regulatory reform task force was created earlier this year after the NCUA, an independent federal financial institutions regulator, voluntarily chose to comply with the spirit of Executive Order 13777, which requires federal agencies to conduct regulatory reviews.
The task force’s recommendations assess regulatory changes in terms of the time and resources necessary to implement them and the potential benefit to credit unions, NCUA said. All regulatory changes will require an affirmative vote by the NCUA’s Board.
In a statement, NCUA said Regulatory review is already part of its culture and that since 1987 it has conducted a three-year rolling review of all its rules.
NAFCU said that it supports ongoing regulatory relief efforts from the NCUA and looks forward to seeing "many of these issues come to fruition."
"Our members have long called for some of these changes, and we expect to see credit union executives showcase their opinions at NAFCU's Congressional Caucus in September where they will meet with members of Congress and hear from representatives from the NCUA," said NAFCU EVP of Government Affairs and General Counsel Carrie Hunt. "The NCUA is also considering three weighty proposals relative to credit union mergers, the overhead transfer rate and the stabilization fund, and we are working to ensure those regulatory measures are in the best interests of credit unions."
John J. McKechnie, a senior partner at Total Spectrum, a Washington advocacy firm, said: "At first reading, this strikes me as a sensible approach to regulatory relief, and certainly fits in well with the overall 'de-regulatory' approach initiated by Treasury. Given the complexities financial institution regulation, you want to see something measured and calculated. This the right way to proceed, and I hope credit unions approach the task of giving input with enthusiasm."