The board of the National Credit Union Administration on Dec. 14 approved a rule amending the regulator's definition of "in danger of insolvency," as stated in its Chartering and Field of Membership Manual.
Under the current definition, the agency must project that a credit union will fall into at least one of three net worth categories over a certain period. The revision increases the time period and adds a fourth category so as to include institutions previously granted assistance, aiming to give the NCUA more flexibility in situations that call for emergency mergers.
The board also approved a final rule that closes the agency's Office of Small Credit Union Initiatives and creates the Office of Credit Union Resources and Expansion.
The new department will cover the shuttered unit's responsibilities, plus certain functions of the Office of Consumer Financial Protection and Access and the Office of Minority and Women Inclusion. The Office of Consumer Financial Protection and Access will also be renamed under the final rule, shortened to the Office of Consumer Financial Protection. The rule, as well as the implementation of the reorganization, takes effect Jan. 6, 2018.