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NAFCU responds to NCUA's renewal of PCA relief with recommendations
NAFCU Thursday wrote to the NCUA in response to the agency's interim final rule (IFR) renewing temporary prompt corrective action (PCA) regulatory relief for federally-insured credit unions (FICUs).
In the letter, NAFCU Regulatory Affairs Counsel Dale Baker called on the NCUA to extend the IFR's automatic expiration date to Dec. 31, 2022 in order to "fully provide FICUs with the financial planning and operational flexibilities necessary to meet compounding share growth stresses and faithfully serve their communities," as they begin to emerge from the coronavirus pandemic.
In addition, Baker encouraged the NCUA to closely monitor and catalogue the streamlined net-worth restoration plan (NWRP) model's results over the life of the IFR to determine whether such a streamlined NWRP model or similar iteration may be permanently adopted.
Read the full letter. The NCUA Board approved the IFR in April; the initial IFR to provide this relief expired in December.