Temporary Regulatory Relief in Response to COVID-19 – Prompt Corrective Action


Prompt Corrective Action: Earnings Retention Waivers and Net Worth Restoration Plans

Subject: Prompt corrective action; coronavirus response
Agency: NCUA
Status: Interim final rule

The NCUA Board (Board) is extending two temporary changes to its prompt corrective action (PCA) regulations to help ensure that federally insured credit unions (FICUs) remain operational and liquid during the COVID-19 crisis. The first amends these regulations to temporarily extend the Board’s ability to issue an order applicable to all FICUs to waive the earnings retention requirement for any FICU that is classified as adequately capitalized. The second extends a provision that modifies the specific documentation required for net worth restoration plans (NWRPs) for FICUs that become undercapitalized. These temporary modifications will remain in place until March 31, 2023. This rule is substantially similar to an interim final rule that the Board published on April 19, 2021 (“2021 PCA interim final”).

FR Doc:
Date proposed: Feb. 17, 2022
Comments due date: April 29, 2022
Effective date:

Feb. 28, 2022

Rule compliance date:
Agency release:

Related Reg Report item(s):

Agency extends temporary provisions giving reg relief to credit unions seeing savings surges during pandemic

Credit union prompt corrective action rules eased for COVID-19