NCUA Proposes Raising Asset Thresholds for Bank and Credit Union Executive Interlocks

The National Credit Union Administration is proposing to raise the asset thresholds that trigger a ban on executives serving at multiple unaffiliated financial institutions at the same time. Currently, the rule blocks a management official from a depository organization with over $2.5 billion in assets from also working at an unaffiliated one with over $1.5 billion. The proposal would raise both numbers to $10 billion.

Why it matters: This is mostly an administrative update. It does not change how credit unions or banks operate day to day. It simply reduces paperwork for institutions that currently have to ask the NCUA for an exemption to share executives. The practical effect is that credit unions under $10 billion in assets will no longer need to file those exemption requests for cross-institution leadership roles.

Who it affects

• Credit unions and other depository organizations with assets between $1.5 billion and $10 billion

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This is a proposed rule published by the National Credit Union Administration in the Federal Register; you should read the full document before relying on it, as it is not yet law and may change.

Agency: National Credit Union Administration
Source: Federal Register — read the official document