Credit union regulator to consider final rules on capital planning/stress tests, advertising

Two final rules – on capital planning and stress testing; and on advertising and notice of insured status – will be on the agenda for the National Credit Union Administration (NCUA) Board when it meets April 19 in open session.

Under the capital planning/stress testing proposal (issued in October), three tiers for “covered credit unions” would be established, based on asset size and tenure under the supervision of the agency’s Office of National Examinations and Supervision (“ONES”). Tier I will include covered credit unions during the first three years under the supervision of ONES and the first three capital planning cycles. Tier II credit unions will be those covered credit unions in their fourth years of ONES supervision, entering their fourth capital planning cycle, with assets between $10 billion and $20 billion.  Tier III will be covered credit unions that have assets greater than $20 billion.

The “accuracy of advertising and notice of insured shares” proposal (also issued last October), recommended the addition of a fourth short statement, “Insured by NCUA,” for official advertising of insured status, as well as an expansion to 30 seconds of an exemption from the advertising statement requirement regarding radio and television advertisements (putting credit union advertising on par with that allowed for banks by the FDIC). NCUA also sought comments about whether its rules should accommodate new trends in advertising such as via social media, texting, and mobile banking applications.

The meeting gets underway at 10 a.m. at NCUA headquarters in Alexandria, Va.

NCUA Board meeting notice