Agency issues prototype call report; signals delay, change for risk-based capital rule

Credit unions will have 60 days to weigh in on both a revised, streamlined call report and an annual operations profile as the National Credit Union Administration (NCUA) strives to unveil the new forms by March of next year, at the earliest, the agency board agreed following a briefing at its regular monthly meeting Thursday.

In issuing a “request for information” on prototypes of the new forms, NCUA said the data fields have been reduced from the existing forms by 40% (for the call report) and 20% (for the profile).

With regard to the call report (Form 5300), NCUA said the 40% reduction in data fields resulted mostly from simplifying derivative schedules (the biggest reduction); streamlining lending-related data collected; and reducing information for shares, liabilities, and off-balance-sheet items. The agency said it has also “improved the organization” of the form in the areas of investment and lending schedules, and “updates based on GAAP,” or those related to the new “current expected credit loss” (CECL) accounting standard (which goes into effect in 2020) for early adopters, and other GAAP changes.

Additionally, the agency is signaling that changes are still being considered to the risk-based capital (RBC) rule, set to take effect next year. The form includes a separate schedule for risk-based capital, the agency said, “in case the rule is not delayed or repealed.”

On the Profile (Form 4501A), the agency said the reduction of 20% was related to reduced checkbox (or attributes) options. Other changes include updating information requests (for “contemporary relevance”) for payment systems, information technology, and product and service categories.

In other action at its meeting Thursday, the credit union regulator’s board:

  • Issued a proposed rule, for 60 days, to clarify its procedures for resolving severance claims – including those that constitute an executive’s “golden parachute” – arising from involuntary liquidations at federally insured credit unions. According to NCUA, the proposal would clarify the requirements for proof of a claim by an employee for pay or benefits such as unpaid wages, sick time or vacation time while making a distinction between employees’ claims and “golden parachutes.”
  • Issued a final rule to amend its regulations and adjust for inflation the maximum amount for civil monetary penalties under its jurisdiction, as required by federal law.
  • Approved the agency’s 2018-2022 strategic plan (and 2018 annual performance plan), which outlines three goals for NCUA: ensure a safe and sound credit union system; provide a regulatory framework that is transparent, efficient, and improves consumer access; and maximize organizational performance to enable mission success.

NCUA Request for information: Modernizing Data Collection for Supervision of Credit Unions

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