ALEXANDRIA, Va. – The NCUA Board approved a proposal to raise the definition of a small credit union from assets less than $50 million to assets less than $100 million at the agency’s board meeting Thursday.
Board Member Mark McWatters supported the proposal but said he preferred raising the asset threshold to less than $250 million.
The NCUA said it estimated the proposed change would allow an additional 745 credit unions to receive consideration for regulatory relief under the Regulatory Flexibility Act.
NCUA staff said it found that smaller federally insured credit unions had slower deposit growth, slower membership growth and slower growth in loan originations. NCUA staff also told the board small federally insured credit unions typically have higher operating expenses.
Chairman Debbie Matz supported the proposed threshold change but said it did not mean that every small credit union was struggling. Matz acknowledged that regulations contributed to the struggles of small credit unions but said there were other challenges to consider, such as market forces.
“Some are able to grow their membership despite all the obstacles,” she said.
McWatters said he hoped the final rule includes a $250 million threshold to cover more credit unions.
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