Letter to Credit Unions - Renewal of Prompt Corrective Action Relief

NCUA recently issued Letter 21-CU-04 to Credit Unions providing important updates regarding PCA regulations. In June 2020, the NCUA Board approved regulatory relief measures related to the NCUA’s PCA regulations in anticipation that some federally insured credit unions may experience a temporary reduction in earnings and regulatory capital ratios due to their COVID-19 response efforts. These temporary modifications expired on December 31, 2020.

Due to the continued impact of the COVID-19 pandemic, however, the NCUA Board decided to reintroduce the two temporary changes to NCUA’s PCA regulations described below to prevent operational disruptions caused by temporary COVID-19 related conditions. NCUA’s Interim Final Rule on Temporary Regulatory Relief in Response to COVID-19-Prompt Corrective Action addresses those temporary changes.