The NCUA Board today unanimously approved a proposed new rule that board members said would move its business lending regulations away from a system of barriers and waivers, and toward one that would instead center on credit unions developing and using sound business lending practices and policies.

"For many years, the prescriptive approach may have been appropriate as credit unions entering the business loan marketplace gained experience," NCUA Board Chairman Debbie Matz said in regards to the proposed change. "Today, however, the vast majority of credit union business lenders have well-established, solid commercial lending infrastructure and sound risk management policies."

Matz pointed to credit unions' overall business lending portfolio, which she said has grown from $4 million to $51 million over the last 15 years, while delinquencies and charge-offs in business loans have indicated solid performance.