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

Title:

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

Subject: Prompt corrective action; coronavirus response
Agency: NCUA
Status: Interim final rule; request for comments
Summary:

The NCUA Board (Board) is making 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 pandemic. The first amends these regulations to temporarily enable the Board 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 modifies these regulations with respect to the specific documentation required for net worth restoration plans (NWRPs) for FICUs that become undercapitalized. These temporary modifications will be in place until March 31, 2022. This rule is substantially similar to an interim final rule that the Board published on May 28, 2020.

FR Doc:

2021-08027 – extension

Date proposed:
Comments due date: June 18, 2021
Effective date:

April 19, 2021

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