NCUA Report - January 2012

JANUARY 2012 NUMBER 1

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HIGHLIGHTS

2 Chairman’s Corner

2012 Exams Will Focus on Managing Lending Risks

NCUA BOARD PROPOSES REG FLEX RELIEF
Proposal Eases Regulatory Burdens for All
Federally Chartered Credit Unions

3 Board Actions

4 Board Perspectives Taking Stock Make No Small Plans

The NCUA Board has unanimously approved a proposed rule enabling all federal credit unions (FCUs) to engage in activities permitted by the existing RegFlex rule without the need to apply for a special RegFlex designation. The proposed rule affects current regulation parts 701, 703, 723 and 742.

5 Building Wealth and Deposits: An Opportunity for Credit Unions

The proposed rule complies with the intent of President Obama’s Executive Order 13579 asking independent agencies to modify, streamline, expand or repeal regulations to provide relief from unnecessary burdens.

6 Regulatory Burden and Small Credit Unions

7 Credit Union Budget Guidance

9 NCUA 2012 Board Meeting Calendar

10 New Internet Authentication Guidance Issued

“Extending the current RegFlex provisions to all federal credit unions fits well with the President’s directive to reduce regulatory burdens where appropriate,” said NCUA Board Chairman Debbie Matz. “As NCUA continually reviews its regulations on a rolling, three-year cycle, we look for ways to streamline and consolidate rules to reduce any unnecessary burdens on credit unions without compromising safety and soundness.”

ALEXANDRIA, Va.—The NCUA Board during its final meeting of 2011 considers a proposed rule to expand RegFlex to all FCUs. The proposed rule would provide regulatory relief to 1,770 FCUs that currently do not have a RegFlex designation.

proposed changes and as of June 30, 2011, FCUs would no longer have to qualify for a specific “RegFlex” designation.

11 What Is a Minority Credit Union?

12 Strategic Risk Management Is Vital

Briefly, the proposed rule would eliminate
the charitable contributions rule and add
relief provisions to rules that apply to
eligible obligations, nonmember deposits,
fixed assets and investments. Under the
NCUA designated 60 percent of FCUs
( 2,764 of 4,534) as RegFlex FCUs. The
proposed changes would extend regulatory
relief to the remaining 1,770 FCUs that do
not currently have a RegFlex designation.