The National Credit Union Administration (NCUA) plans to submit an information collection request to the Office of Management and Budget (OMB) as part of their compliance with the Paperwork Reduction Act of 1995. This request concerns the regulation for Liquidity and Contingency Funding Plans, which is intended to ensure that federally insured credit unions manage liquidity risks effectively. The NCUA's rule, codified in 12 CFR 741.12, creates a tiered system based on asset size that requires various levels of planning and preparation among credit unions. Public comments on this submission are welcome until March 15, 2021.
Simple Explanation
The NCUA wants to make sure that credit unions have plans ready for when they need money quickly, and they're asking for permission to collect information to check if credit unions are prepared. They invite people to share their thoughts about this plan by March 15, 2021.