Type:Proposed Rule
Citation:86 FR 10872
Reading Time:about 21 minutes
The National Credit Union Administration (NCUA) is proposing a rule to raise the asset threshold for defining a credit union as "complex" from $50 million to $500 million. This change affects credit unions subject to risk-based net worth requirements. The proposal aims to provide credit unions more flexibility to offer loans and services to their members during the COVID-19 pandemic while maintaining financial safety. Comments on this proposed rule must be submitted by March 25, 2021.
Simple Explanation
The government wants to change the rules so that only really big credit unions (having more than $500 million) have to play by certain hard money rules. This helps smaller credit unions have an easier time lending money to people during the COVID-19 pandemic.