ALEXANDRIA, Va.–NCUA said it has made revisions to its supervisory policies that will make the secondary capital process easier for low-income credit unions and investors.
“Under my Regulatory Modernization Initiative, NCUA seeks to lift compliance burdens from credit unions where it’s prudent and consistent with safety and soundness,” Board Chairman Debbie Matz said in a released statement. “Sometimes, that’s accomplished through regulation; other times, through supervisory changes. The supervisory changes related to supplemental capital make it easier for low-income credit unions to obtain, and give investors greater clarity and confidence. We’ve also added more flexibility and transparency.”
Matz said the changes to the agency’s National Supervision Policy Manual were aimed at achieving two goals: expediting the approval of secondary capital requests by regional offices and making it possible for credit unions that have secondary capital to return portions of the loans that no longer count towards net worth.
The revised procedures can be found in the updated section of the agency’s National Supervision Policy Manual, available online here.
NCUA currently has a secondary and supplemental capital working group in place that is being chaired by Bill Myers, director of its Office of Small Credit Union initiatives. The working group is examining ideas for raising the value of secondary capital for low-income credit unions.
The agency said the working group will publish a secondary capital web page later this month. Interested parties may e-mail comments to the group at SCWG@ncua.gov.