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NCUA agenda includes NAFCU-supported PCA rule, cybersecurity briefing
The NCUA Board next week is set to issue a NAFCU-sought interim final rule (IFR) on prompt corrective action (PCA). Also on the agenda, the board will receive a briefing on cybersecurity.
The meeting, scheduled to begin at 10 a.m. Eastern, will be available via livestream on the agency's website.
On PCA, the NCUA last year unanimously approved an IFR to provide temporary regulatory capital relief to federally-insured credit unions (FICUs) in response to the coronavirus pandemic. The modifications expired Dec. 31, 2020, and NAFCU has advocated for the NCUA to reinstate the IFR and continue to provide much-needed relief for credit unions.
The previous IFR temporarily:
- permitted the NCUA Board to issue an order to temporarily waive the earnings retention requirement for any FICU that is classified as adequately capitalized; and
- permitted FICUs to submit simplified net worth restoration plans and attest that its reduction in capital has been caused by share growth resulting from a temporary condition due to the coronavirus pandemic.
NAFCU President and CEO Dan Berger urged the agency to again provide this specific relief, among other items, during meetings with Chairman Todd Harper and Vice Chairman Kyle Hauptman earlier this month.
On cybersecurity, the agency recently detailed its move toward a new framework for cyber-focused examinations in its Annual Report. The Annual Report, released in March, further emphasized the agency’s focus on technology modernization and cybersecurity efforts.
NAFCU will monitor next week's meeting and update credit unions the latest from the NCUA.