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Rules and Regulations
Federal Register Vol. 86, No. 54
Tuesday, March 23, 2021

This section of the FEDERAL REGISTER
contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.

NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Parts 700, 702, 708a, 708b, and 790
NCUA20210111
RIN 3133AF36

Asset Thresholds National Credit Union Administration NCUA.
ACTION: Interim final rule with request for comments.
AGENCY:

To mitigate transition costs on credit unions related to the coronavirus disease 2019 COVID19 Pandemic, the NCUA Board Board is issuing this temporary interim final rule to permit federally insured credit unions FICUs to use asset data as of March 31, 2020, in order to determine the applicability of certain regulatory asset thresholds during calendar years 2021 and 2022.
Specifically, the interim final rule allows a FICU to use March 31, 2020, financial data when determining whether the institution is subject to capital planning and stress testing requirements under the NCUAs regulations and supervision from the Office of National Examinations and Supervision.

SUMMARY:

This rule is effective on March 23, 2021, except for amendatory instruction 4, which is effective January 1, 2022. Comments must be received on or before May 24, 2021.
ADDRESSES: You may submit written comments, identified by RIN 3133
AF36, by any of the following methods Please send comments by one method only:
Federal eRulemaking Portal: http
www.regulations.gov. The docket number for this interim final rule is NCUA20210111. Follow the instructions for submitting comments.
Fax: 703 5186319. Include Your NameComments on Interim DATES:

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Final Rule: Asset Thresholds in the transmittal.
Mail: Address to Melane ConyersAusbrooks, Secretary of the Board, National Credit Union Administration, 1775 Duke Street, Alexandria, Virginia 223143428.
Hand Delivery/Courier: Same as mail address.
Public inspection: You may view all public comments on the Federal eRulemaking Portal at http
www.regulations.gov, as submitted, except for those we cannot post for technical reasons. The NCUA will not edit or remove any identifying or contact information from the public comments submitted. Due to social distancing measures in effect, the usual opportunity to inspect paper copies of comments in the NCUAs law library is not currently available. After social distancing measures are relaxed, visitors may make an appointment to review paper copies by calling 703 5186540
or emailing OGCMail@ncua.gov.
FOR FURTHER INFORMATION CONTACT:
Yvonne Applonie, Director of Supervision, Office of National Examinations and Supervision; or Rachel Ackmann, Senior Staff Attorney, Office of General Counsel, 1775 Duke Street, Alexandria, VA 223143428.
Yvonne Applonie can also be reached at 703 5186595, and Rachel Ackmann can be reached at 703 5482601.
SUPPLEMENTARY INFORMATION:
I. Background In light of strains in economic conditions related to the COVID19
Pandemic and stress in U.S. financial markets, the NCUA has taken a number of actions intended to: i Restore market functioning and support the flow of credit to households, businesses, and communities and ii increase flexibility and tailor regulations.
Among those actions, the NCUA has issued a number of rules and supervisory guidance communications designed to mitigate the consequences of the COVID19 Pandemic, to facilitate the safe and effective operations of FICUs and to protect credit union members.1 Credit unions have played an 1 See e.g., Temporary Regulatory Relief in Response to COVID19Extension, 85 FR 83405
Dec. 22, 2020; Regulatory Capital Rule: Paycheck Protection Program Lending Facility and Paycheck Protection Program Loans, 85 FR 23212 Apr. 27, 2020; and Real Estate Appraisals, 85 FR 22014
Apr. 21, 2020.

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instrumental role in the nations financial response to the COVID19
Pandemic, and many have experienced significant balance sheet growth as a result of the COVID19 Pandemic and the policy response to the event.
The unprecedented balance sheet growth is largely a result of individual member response to actions taken by monetary and fiscal authorities. At the start of the COVID19 Pandemic, consumer spending decreased as individual states or major metropolitan areas ordered millions of Americans to stay home. Additionally, market volatility pushed savers with money in financial markets to safer assets, including insured shares. Fiscal stimulus applied additional upward pressure on FICU balance sheets. For example, as part of the Coronavirus Aid, Relief, and Economic Security Act CARES Act, the U.S. government provided over $1 trillion in direct support to consumers and businesses through business loans, expanded unemployment insurance, and direct checks to individuals.2 The direct government assistance and dramatic reduction in discretionary spending lifted the personal savings rate and fueled share growth. For FICUs just below $10 billion in assets, these factors have resulted in their balance sheets swelling by an average of about 14
percent, and in one case by more than 34 percent. In contrast, in 2019, FICUs with assets just below the $10 billion threshold had an average asset growth of only 9 percent.
FICUs are subject to regulatory requirements predicated on their risk profile and asset size.3 Specifically, part 702 of the NCUAs regulations contain asset-based thresholds that determine whether a FICU is required to comply with capital planning and stress testing requirements. In addition, oversight by the Office of National Examinations and Supervision ONES is dependent on a FICUs asset size. Due to their response to the COVID19 Pandemic, many FICUs have been, or may soon be, pushed over the asset thresholds that could subject them to additional regulatory requirements or ONES
2 Public 3 See
E:FRFM23MRR1.SGM

Law 116136, 134 Stat. 281.
e.g., 12 CFR 702.103 and 12 CFR 702.502.

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