NAFCU Statement on NCUA Action on Stress Testing and Associational Common Bond
Washington (April 24, 2014) - National Association of Federal Credit Unions (NAFCU) Director of Regulatory Affairs Michael Coleman issued the following statement regarding the National Credit Union Administration’s (NCUA) actions today on the final stress testing rule and proposed associational common bond rule.
“We have been arguing for less, not more, regulatory burden in our conversations with NCUA, other regulators and Congress,” Coleman said of the final stress test rule. “This final rule significantly ramps up current burdens and increases costs for all insured credit unions.”
“Although NCUA’s final rule allows for credit unions to apply to conduct their own stress tests following three years of NCUA-run stress testing, the credit union will have already had to expend a considerable amount of money and time to switch their processes and systems to accommodate NCUA’s stress tests. This provision provides little relief from the original proposal’s requirements.”
“Regarding the associational common bond, while NAFCU appreciates the proposal’s efforts to streamline certain requirements for amending a federal credit union’s field of membership, NAFCU opposes the incorporation of a threshold determination requirement,” said Coleman.
“NAFCU supports all options for credit unions to have robust fields of membership,” Coleman said. “NCUA should be removing hurdles from its regulations. Instead, NCUA is making it more and more difficult to be a credit union.”
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.