Last week, the National Credit Union Administration announced its next steps in conducting a review of agency regulations with the goal of potentially identifying any rules that it deems are “outdated, unnecessary, and unduly burdensome.”
The review will take place over the course of two years, during which time the NCUA will seek comments on regulations falling under ten categories:
- Applications and Reporting;
- Powers and Activities;
- Agency Programs;
- Capital;
- Consumer Protection;
- Corporate Credit Unions;
- Directors, Officers, and Employees;
- Anti-Money Laundering and Bank Secrecy Act;
- Rules of Procedure; and
- Safety and Soundness.
The review is part of the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) of 1996, which requires that the Federal Financial Institutions Examination Council and its member agencies (Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, and Federal Deposit Insurance Corporation) conduct a review at least every ten years.
Though the NCUA is not statutorily required to participate, they opted to conduct their own review, starting with a Request for Comment (RFC) on the categories of “Applications and Reporting” and “Powers and Activities” in 2024. The second RFC with comment period ending October 8, 2025, will address agency programs, consumer protection, and capital.
Per the RFC, “The Board has not identified any rules pertaining to Agency Programs, Capital, and Consumer Protection that would have a significant impact on a substantial number of small entities. However, the Board will consider any public comments submitted through the decennial review process and agency experience to identify regulations it can update that have a significant impact on a substantial number of small federally insured credit unions.”
The continuation of this voluntary initiative comes on the heels of restructuring and downsizing, and orders from the White House to cut back. In May, the NCUA reported that its voluntary separation program resulted in over 250 employees enrolling, putting the agency on track to meet its goals of a 20% reduction in staffing. This could result in $75 million in payroll savings for 2026.
