ALEXANDRIA, Va.--NCUA Monday issued a notice of proposed rulemaking to codify the elimination of reputation risk from its supervisory program, the agency announced.
NCUA previously announced it ceased using reputation risk and equivalent concepts in the examination and supervisory process.
The proposed rule would also prohibit NCUA from instructing credit unions to close accounts, refrain from providing, or altogether terminating products and services on the basis of a person or entity’s protected class or political views, NCUA said.
NCUA added that it has determined that assessing reputation risk is subjective, ambiguous, and lacking in measurable criteria. The proposed rule is intended to ground NCUA’s supervision and examination programs in data-driven conclusions to eliminate the risk of individual perspectives driving the supervisory process.