NCUA Report - October 2012

OCTOBER 2012 NUMBER 10

WWW.NCUA.GOV

HIGHLIGHTS

2 Chairman’s Corner Regulatory Modernization Initiative Delivers Results

BOARD MOVES TO LESSEN SMALL
CREDIT UNION REGULATORY BURDENS
Setting “Small Entity” Definition at $30 Million
Would Cover 4,041 Credit Unions

3 NCUA Board Advances Regulatory Relief for Credit Unions

4 Board Perspectives Supercalifragilisticexpialidocious

5 Macroeconomic Trends Gradually Benefit Credit Union Performance

7 If It Is to Good Too Be True…Then It Could Easily Be a Ponzi Scheme

8 What Credit Unions Should Know about Private Student Loans

As part of NCUA’s ongoing efforts to provide regulatory relief, the Board voted unanimously to issue a proposed rule and interpretive statement updating the definition of a “small entity” under the Regulatory Flexibility Act. The revised threshold would include federally insured credit unions with less than $30 million in assets. Currently, the small credit union asset threshold is less than $10 million in assets.

“Small credit unions are essential to the
credit union industry and to their own
communities. To help more small credit
unions remain viable, we need to provide
greater resources and impose fewer
burdens,” said Chairman Matz. “This
proposed rule would provide critically
needed regulatory relief by decreasing
compliance costs for more than 1,600
federal and state credit unions. This
proposed rule would also better position
NCUA’s policies toward small credit unions
in the future.”
To ensure that the threshold will be
modernized more frequently in the future,
the Board also voted to reevaluate the small
credit union definition every three years.
Each reevaluation would consider credit
union asset growth combined with inflation
and industry consolidation.