updated 06/09/14 05:23 PM
Congress Looks at NCUA Rules
Last week the National Credit Union Administration (NCUA) issued a notice of regulatory reviews and request for comments.
This review is part of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA) that requires the Office of the Comptroller of the Currency (OCC), Federal Reserve Board (FRB), and Federal Deposit Insurance Corp. (FDIC) to review regulations at least every 10 years.
As a member of the Federal Financial Institutions Examination Council (FFIEC), the NCUA elected to participate in the first review 10 years ago, and elected again to participate in this round. EGRPRA requires agencies to categorize the regulations, publish the regulations in each category for comment, report to Congress on any significant issues raised by the comments, and identify areas of regulations that are outdated, unnecessary, or unduly burdensome.
“This review is in addition to the NCUA’s regular review of one-third of their regulations every year, and it varies in one very important way—the requirement for NCUA to report to Congress any significant issues raised,” said Sharon Lindeman, vice president of regulatory advocacy for the California and Nevada Credit Union Leagues. “This gives credit unions an excellent opportunity to raise critical issues, and to know those issues won’t fall on deaf ears at the regulator, but will be reported up to Congress.”
The agencies divided the regulations into 12 categories. The NCUA has published the first request for comments. At regular intervals over the next two years, NCUA will publish three additional notices for comment. Each notice will address at least one category of the regulations.
The first notice seeks comment on regulations from two categories: 1) Applications and Reporting; and 2) Powers and Activities. Issues to consider include the need for statutory change; need and purpose of the regulations; overreaching approaches and flexibility; effect on competition, reporting, recordkeeping and disclosure requirements; clarity; unique characteristics of credit unions; burden on small credit unions; and scope of rules (consistent with intent of the statute).
A list of the regulations covered under these two categories will be available soon in PowerComment.org, and the Leagues will seek comments from credit unions. Comments are due Sept. 2, 2014.
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