Bankowość i finanse · 10/29/1998

Prompt Corrective Action

The National Credit Union Administration (NCUA) requests public comment on development of a system of ``prompt corrective action'' to be taken by NCUA when a federally-insured credit union becomes undercapitalized. A new provision of the Federal Credit Union Act, as added by the Credit Union Membership Access Act, requires the NCUA Board to adopt, by regulation, a system of prompt corrective action indexed to each of five capital categories which the new provision establishes for federally-insured credit unions. Much of the system of prompt corrective action either is already prescribed by the new provision itself or is required to be comparable with the system Congress established for other federally-insured financial institutions in 1991. However, Congress has left to NCUA the responsibility to develop implementing regulations for certain components of the system of prompt corrective action which are unique to credit unions. Information and comments from interested parties on these specific components will assist NCUA in carrying out its mandate to implement a system of prompt corrective action.