Voglio sapere a riguardo di…

Federal Register / Vol. 86, No. 34 / Tuesday, February 23, 2021 / Rules and Regulations as a director, officer, employee, agent, owner, partner, or consultant with an affiliate of the industrial bank; or e Enter into any contract for services material to the operations of the industrial bank for example, loan servicing function with such Covered Company or any subsidiary thereof.
354.6

Reservation of authority.

Nothing in this part limits the authority of the FDIC under any other provision of law or regulation to take supervisory or enforcement actions, including actions to address unsafe or unsound practices or conditions, or violations of law.
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on December 15, 2020.
James P. Sheesley, Assistant Executive Secretary.
FR Doc. 202028473 Filed 22221; 8:45 am BILLING CODE 671401P

NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 704
RIN 3133AF13

Corporate Credit Unions National Credit Union Administration NCUA.

AGENCY:
ACTION:

Final rule.

The NCUA Board Board is issuing a final rule that amends the NCUAs corporate credit union regulation. The final rule updates the definitions in this regulation and makes clear that corporate credit unions may purchase subordinated debt instruments issued by natural person credit unions.
The final rule also specifies the capital treatment of these instruments for corporate credit unions that purchase them.

SUMMARY:

The final rule is effective January 1, 2022.

DATES:

FOR FURTHER INFORMATION CONTACT:

Policy and Analysis: Robert Dean, National Supervision Analyst, Office of National Examinations and Supervision, 703 5186652; Legal: Rachel Ackmann, Senior Staff Attorney, Office of General Counsel, 703 5482601; or by mail at National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314.
SUPPLEMENTARY INFORMATION:

VerDate Sep<11>2014

21:28 Feb 22, 2021

Jkt 253001

I. Introduction a. Legal Authority and Background The Board is issuing this rule pursuant to its authority under the Federal Credit Union Act FCU Act.1
Under the FCU Act, the NCUA is the chartering and supervisory authority for Federal credit unions FCUs and the federal supervisory authority for federally insured credit unions FICUs.
The FCU Act grants the NCUA a broad mandate to issue regulations governing both FCUs and FICUs. Section 120 of the FCU Act is a general grant of regulatory authority and authorizes the Board to prescribe regulations for the administration of the FCU Act.2 Section 209 of the FCU Act is a plenary grant of regulatory authority to the NCUA to issue regulations necessary or appropriate to carry out its role as share insurer for all FICUs.3 The FCU Act also includes an express grant of authority for the Board to subject federally chartered central, or corporate, credit unions to such rules, regulations, and orders as the Board deems appropriate.4
Part 704 of the NCUAs regulations implements the requirements of the FCU Act regarding corporate credit unions.5 In 2010, the Board comprehensively revised the regulations governing corporate credit unions to provide longer-term structural enhancements to the corporate system in response to the financial crisis of 20072009.6 The provisions of the 2010
rule successfully stabilized the corporate system and improved corporate credit unions ability to function and provide services to natural person credit unions. Since 2010, and as part of the Boards continuous reevaluation of its regulation of corporate credit unions, the Board has amended part 704 on several occasions.7
In 2017, the Board amended corporate credit union capital standards to change the calculation of capital after a consolidation and to set a retained earnings ratio target in meeting prompt corrective action commonly referred to as PCA standards.8 In October 2020, the Board issued a final rule to amend several provisions relating to corporate credit union investments in credit union service organizations CUSOs and other provisions relating to corporate credit 1 12

U.S.C. 1751 et seq.
U.S.C. 1766a.
3 12 U.S.C. 1789.
4 12 U.S.C. 1766a.
5 12 CFR part 704.
6 75 FR 64786 Oct. 20, 2010.
7 See e.g., 80 FR 25932 May 6, 2015, 80 FR
57283 Sept. 23, 2015, and 82 FR 55497 Nov. 22, 2017.
8 82 FR 55497 Nov. 22, 2017.
2 12

PO 00000

Frm 00027

Fmt 4700

Sfmt 4700

10729

union governance and technical matters, as discussed in the following sections.
b. February 2020 Proposed Rule on Part 704
On February 20, 2020, the Board approved a notice of proposed rulemaking to update, clarify, and simplify several provisions of part 704
proposed rule.9 The proposed rule provided for a 60-day comment period, which the Board later extended by 60
days because of COVID19.10 The comment period ended on July 27, 2020.
c. October 2020 Final Rule on Part 704
The NCUA received 35 comment letters on the proposed rule. Comments were received from credit unions, both corporate and natural persons, credit union leagues and trade associations, individuals, corporate CUSOs, and an association of state credit union supervisors. In October 2020, the Board issued a final rule that: 1 Permits a corporate credit union to make a minimal investment in a CUSO without the CUSO being classified as a corporate CUSO and subject to heightened NCUA
oversight; 2 expands the categories of senior staff positions at member credit unions eligible to serve on a corporate credit unions board; 3 removes the experience and independence requirement for a corporate credit unions enterprise risk management expert; 4 clarifies the definition of a collateralized debt obligation; and 5
simplifies the requirement for net interest income modeling.11
The October 2020 final rule deferred final action on the provisions in the proposed rule that addressed the permissibility and capital treatment for corporate credit union purchases of subordinated debt instruments under the Boards January 2020 proposed rule on subordinated debt.12 In the October 2020 final rule, the Board discussed the comments on this part of the proposed rule and noted that the commenters that addressed these provisions all supported them. The Board did not adopt the provisions at that time because it had not yet finalized the January 2020 proposed rule on subordinated debt.
d. Final Rule on Subordinated Debt The Board has now adopted the January 2020 proposed rule on subordinated debt as final.13 These 9 85

FR 17288 Mar. 27, 2020.
FR 20431 Apr. 13, 2020.
11 85 FR 71817 Nov. 12, 2020.
12 85 FR 13982 Mar. 10, 2020.
13 See, https www.ncua.gov/files/agenda-items/
AG20201217Item5b.pdf.
10 85

E:FRFM23FER1.SGM

23FER1