The NCUA board approved the final rule on emergency liquidity and contingency funding plans, along with the electronic filing of financial reports at its Oct. 24 meeting. The board also approved a proposed rule to protect the National Credit Union Share Insurance Fund by requiring annual stress tests for federally insured credit unions exceeding $10 billion in assets.
The NCUA subsequently published two letters to credit unions to aid in the compliance with the new requirements. The first, NCUA Letter 13-CU-10, addresses the revisions to NCUA Rule 741.12 on liquidity and contingency funding plans. The effective date for compliance with this new rule is March 31, 2014.
The letter also provides guidance on which credit unions are subject to the rule:
NCUA 13-CU-10 also summarizes action steps and compliance dates, a recommended timetable for those steps and frequently asked questions. The NCUA board determined not to include Federal Home Loan Bank membership as a federal contingency source for purposes of meeting the requirements of this rule.
The NCUA also finalized the requirement for credit unions to file financial, statistical and other reports and credit union profiles electronically using NCUA’s information managements system or other electronic means specified by the NCUA. This final rule will be effective on Jan. 1, 2014. NCUA Letter 13-CU-11 provides resources to help credit unions comply with this change.