ALEXANDRIA, Va. – Today, NCUA increased the asset-level test that defines a small credit union. The threshold was raised to $50 million as recommended by CUNA, up from $10 million.
CUNA President/CEO Bill Cheney said, "Raising the threshold for the definition of 'small entity' is a step in the right direction, and we look forward to monitoring the effectiveness of this approach for credit unions."
He added, "In our comments to the agency, we suggested a threshold of $50 million for agency assistance and access – and a higher level for purposes of regulatory relief. We commend the agency for taking the action today, which will benefit many more small credit unions. CUNA continually looks for ways to assist small credit unions and we anticipate working with NCUA as it implements this new threshold."
The NCUA's change will make assistance from the NCUA's Office of Small Credit Union Initiatives (OSCUI) available to more than 4,600 credit unions--an increase of 2,270. The agency made it clear that the OSCUI will make changes to its procedures to handle the increased workload without adding additional staff.
Under the new rule, the NCUA will consider periodic changes to the asset-level test; initially every two years, and eventually every three years.