[Federal Register Volume 86, Number 54 (Tuesday, March 23, 2021)]
[Rules and Regulations]
[Pages 15397-15401]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05967]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
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 under 50 titles pursuant to 44 U.S.C. 1510.
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  Federal Register / Vol. 86, No. 54 / Tuesday, March 23, 2021 / Rules 
and Regulations  

[[Page 15397]]



NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Parts 700, 702, 708a, 708b, and 790

[NCUA-2021-0111]
RIN 3133-AF36


Asset Thresholds

AGENCY: National Credit Union Administration (NCUA).

ACTION: Interim final rule with request for comments.

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SUMMARY: To mitigate transition costs on credit unions related to the 
coronavirus disease 2019 (COVID-19 Pandemic), the NCUA Board (Board) is 
issuing this temporary interim final rule to permit federally insured 
credit unions (FICUs) to use asset data as of March 31, 2020, in order 
to determine the applicability of certain regulatory asset thresholds 
during calendar years 2021 and 2022. Specifically, the interim final 
rule allows a FICU to use March 31, 2020, financial data when 
determining whether the institution is subject to capital planning and 
stress testing requirements under the NCUA's regulations and 
supervision from the Office of National Examinations and Supervision.

DATES: This rule is effective on March 23, 2021, except for amendatory 
instruction 4, which is effective January 1, 2022. Comments must be 
received on or before May 24, 2021.

ADDRESSES: You may submit written comments, identified by RIN 3133-
AF36, by any of the following methods (Please send comments by one 
method only):
     Federal eRulemaking Portal: http://www.regulations.gov. 
The docket number for this interim final rule is NCUA-2021-0111. Follow 
the instructions for submitting comments.
     Fax: (703) 518-6319. Include ``[Your Name]--Comments on 
Interim Final Rule: Asset Thresholds'' in the transmittal.
     Mail: Address to Melane Conyers-Ausbrooks, Secretary of 
the Board, National Credit Union Administration, 1775 Duke Street, 
Alexandria, Virginia 22314-3428.
     Hand Delivery/Courier: Same as mail address.
    Public inspection: You may view all public comments on the Federal 
eRulemaking Portal at http://www.regulations.gov, as submitted, except 
for those we cannot post for technical reasons. The NCUA will not edit 
or remove any identifying or contact information from the public 
comments submitted. Due to social distancing measures in effect, the 
usual opportunity to inspect paper copies of comments in the NCUA's law 
library is not currently available. After social distancing measures 
are relaxed, visitors may make an appointment to review paper copies by 
calling (703) 518-6540 or emailing [email protected].

FOR FURTHER INFORMATION CONTACT: Yvonne Applonie, Director of 
Supervision, Office of National Examinations and Supervision; or Rachel 
Ackmann, Senior Staff Attorney, Office of General Counsel, 1775 Duke 
Street, Alexandria, VA 22314-3428. Yvonne Applonie can also be reached 
at (703) 518-6595, and Rachel Ackmann can be reached at (703) 548-2601.

SUPPLEMENTARY INFORMATION: 

I. Background

    In light of strains in economic conditions related to the COVID-19 
Pandemic and stress in U.S. financial markets, the NCUA has taken a 
number of actions intended to: (i) Restore market functioning and 
support the flow of credit to households, businesses, and communities 
and (ii) increase flexibility and tailor regulations.
    Among those actions, the NCUA has issued a number of rules and 
supervisory guidance communications designed to mitigate the 
consequences of the COVID-19 Pandemic, to facilitate the safe and 
effective operations of FICUs and to protect credit union members.\1\ 
Credit unions have played an instrumental role in the nation's 
financial response to the COVID-19 Pandemic, and many have experienced 
significant balance sheet growth as a result of the COVID-19 Pandemic 
and the policy response to the event.
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    \1\ See e.g., Temporary Regulatory Relief in Response to COVID-
19-Extension, 85 FR 83405 (Dec. 22, 2020); Regulatory Capital Rule: 
Paycheck Protection Program Lending Facility and Paycheck Protection 
Program Loans, 85 FR 23212 (Apr. 27, 2020); and Real Estate 
Appraisals, 85 FR 22014 (Apr. 21, 2020).
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    The unprecedented balance sheet growth is largely a result of 
individual member response to actions taken by monetary and fiscal 
authorities. At the start of the COVID-19 Pandemic, consumer spending 
decreased as individual states or major metropolitan areas ordered 
millions of Americans to stay home. Additionally, market volatility 
pushed savers with money in financial markets to safer assets, 
including insured shares. Fiscal stimulus applied additional upward 
pressure on FICU balance sheets. For example, as part of the 
Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the 
U.S. government provided over $1 trillion in direct support to 
consumers and businesses through business loans, expanded unemployment 
insurance, and direct checks to individuals.\2\ The direct government 
assistance and dramatic reduction in discretionary spending lifted the 
personal savings rate and fueled share growth. For FICUs just below $10 
billion in assets, these factors have resulted in their balance sheets 
swelling by an average of about 14 percent, and in one case by more 
than 34 percent. In contrast, in 2019, FICUs with assets just below the 
$10 billion threshold had an average asset growth of only 9 percent.
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    \2\ Public Law 116-136, 134 Stat. 281.
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    FICUs are subject to regulatory requirements predicated on their 
risk profile and asset size.\3\ Specifically, part 702 of the NCUA's 
regulations contain asset-based thresholds that determine whether a 
FICU is required to comply with capital planning and stress testing 
requirements. In addition, oversight by the Office of National 
Examinations and Supervision (ONES) is dependent on a FICU's asset 
size. Due to their response to the COVID-19 Pandemic, many FICUs have 
been, or may soon be, pushed over the asset thresholds that could 
subject them to additional regulatory requirements or ONES

[[Page 15398]]

supervision.\4\ Complying with these new or more stringent regulatory 
standards would impose additional transition and compliance costs on 
such FICUs that otherwise may not have become subject to these 
requirements at this time. This interim final rule gives affected FICUs 
more time to either reduce their balance sheets, or to prepare for 
higher regulatory standards.
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    \3\ See e.g., 12 CFR 702.103 and 12 CFR 702.502.
    \4\ Based on data as of December 31, 2020, there are eight FICUs 
that crossed asset-based threshold in part 702, Subpart E.
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    Additionally, the Board does not believe that the balance sheet 
growth related to the COVID-19 Pandemic has significantly increased the 
general risk profile of the affected FICUs. As discussed previously, 
FICUs' growth is largely due to the extraordinary growth in insured 
shares held by FICUs. Therefore, the Board feels it prudent to offer 
FICUs relief with respect to certain regulatory requirements being 
triggered by the unprecedented balance sheet growth.
    On December 2, 2020, the Federal Deposit Insurance Corporation, the 
Office of the Comptroller of the Currency, and Board of Governors of 
the Federal Reserve System published a related interim final rule to 
mitigate temporary transition costs on banking organizations with under 
$10 billion in total assets as of December 31, 2019, related to the 
COVID-19 Pandemic.\5\
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    \5\ 85 FR 77345 (Dec. 2, 2020).
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II. Legal Authority

    The Board is issuing this interim final rule pursuant to its 
authority under the Federal Credit Union Act (FCU Act).\6\ Under the 
FCU Act, the NCUA is the chartering and supervisory authority for 
Federal credit unions (FCUs) and the federal supervisory authority for 
FICUs. The FCU Act grants the NCUA a broad mandate to issue regulations 
governing both FCUs and FICUs. Section 120 of the FCU Act is a general 
grant of regulatory authority and authorizes the Board to prescribe 
regulations for the administration of the FCU Act.\7\ Section 209 of 
the FCU Act is a plenary grant of regulatory authority to the NCUA to 
issue regulations necessary or appropriate to carry out its role as 
share insurer for all FICUs.\8\ Accordingly, the FCU Act grants the 
Board broad rulemaking authority to ensure that the credit union 
industry and the National Credit Union Share Insurance Fund remain safe 
and sound.
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    \6\ 12 U.S.C. 1751 et seq.
    \7\ 12 U.S.C. 1766(a).
    \8\ 12 U.S.C. 1789.
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III. The Interim Final Rule

A. Measurement Date for the Applicability of Capital Planning and 
Stress Testing Requirements and Office of National Examinations and 
Supervision Oversight

    Part 702, subpart E, of the NCUA's regulations (part 702) contains 
asset-based thresholds that determine whether a FICU is required to 
comply with capital planning and stress testing requirements.\9\ The 
asset-based thresholds are meant to ensure that the regulatory 
requirements applicable to a FICU are appropriate, given the FICU's 
asset size and, in some cases, the potential risk that the credit union 
poses to the National Credit Union Share Insurance Fund.
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    \9\ 12 CFR part 702, subpart E.
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    As discussed previously, many FICUs have experienced an unexpected 
and sharp increase in their balance sheets since the beginning of the 
COVID-19 Pandemic. This unexpected and rapid growth has caused the 
assets of certain FICUs to rise above asset-based thresholds in part 
702 and may cause other FICUs to do so soon. In addition, much of this 
growth is the result of actions taken by monetary and fiscal 
authorities, and by individual members in response to the COVID-19 
Pandemic and generally does not reflect any immediate change in the 
organization's longer-term risk profile.
    In the absence of regulatory change, FICUs that experience an 
increase in assets above one or more thresholds in part 702 would face 
additional transition costs necessary to comply with the new or more 
stringent regulatory standards they have not accounted for in 2021 
strategic financial plans and budgets. Given the rapid and unexpected 
nature of FICU asset growth in 2020, many FICUs are unlikely to have 
planned for these transition costs.
    Therefore, the Board believes it is appropriate to provide 
temporary regulatory relief to FICUs that have risen above, or will 
rise above, the asset-based thresholds in part 702. The relief should 
permit a covered FICU to either delay for one year transition costs 
that it would otherwise be subject to immediately, to comply with the 
new standards or an additional year to reduce its total assets to below 
the applicable asset-based threshold. In order to provide this relief, 
the Board is issuing this interim final rule to temporarily change the 
date as of when a FICU measures its assets for the purpose of the 
capital planning and stress testing requirement.
    Part 702 applies capital planning and stress testing requirements 
to ``covered credit unions.'' A FICU is defined as a covered credit 
union, and subject to capital planning and stress testing requirements, 
if it has $10 billion or more in total assets.\10\ Covered credit 
unions are then further divided into three tiers and varying levels of 
regulatory requirements are imposed based on those asset tiers. The 
tiers ensure capital planning and stress testing requirements are 
tailored to reflect the size, complexity, and financial condition of 
the subject credit union. For example, tier I credit unions are not 
subject to stress testing requirements, however tier II and tier III 
credit unions are subject to stress testing requirements. Under part 
702:
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    \10\ See, 12 CFR 702.502. Covered credit unions are defined as a 
FICU whose assets are $10 billion or more.
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     A tier I credit union is a covered credit union that has 
less than $15 billion in total assets;
     A tier II credit union is a covered credit union that has 
$15 billion or more in total assets, but less than $20 billion in total 
assets, or is otherwise designated as a tier II credit union by the 
NCUA; and
     A tier III credit union is a covered credit union that has 
$20 billion or more in total assets, or is otherwise designated as a 
tier III credit union by the NCUA.
    Part 702 applies the asset thresholds for each tier based on a 
FICU's asset size on March 31 each year (measurement date). Under the 
current rule, if a FICU crosses any of the tier I, II, or III asset 
thresholds on March 31, then the FICU's new classification is effective 
on January 1 of the next year. Accordingly, a FICU's calendar year 2021 
capital planning and stress testing requirements were determined by its 
total assets as of March 31, 2020 and were effective January 1, 2021. 
If a FICU had $10 billion or more in total assets as of March 31, 2020, 
it must complete a capital plan in calendar year 2021. And, if a 
covered credit union had $15 billion in assets on March 31, 2020, it 
must conduct a stress test in calendar year 2021.
    As discussed previously, the interim final rule temporarily amends 
the measurement date used to determine whether a FICU crosses any of 
the tier I, II, or III asset thresholds for capital planning and stress 
testing requirements in calendar year 2022. Under the interim final 
rule, a FICU will use its assets reported as of March 31, 2020, instead 
of March 31, 2021, to determine its applicable asset thresholds for

[[Page 15399]]

calendar year 2022. This means that asset growth in 2020 will not 
trigger new regulatory requirements under Part 702 until January 1, 
2023, at the earliest.
    Therefore, if a FICU had substantial asset growth during the latter 
half of 2020 and has $10 billion or more in assets on March 31, 2021, 
but had less than $10 billion in assets on March 31, 2020, the FICU 
does not meet the definition of a covered credit union and will not be 
designated as a tier I credit union subject to capital planning 
requirements on January 1, 2022. If a FICU had $10 billion or more in 
total assets on March 31, 2020, however, it must complete a capital 
plan this year (for calendar year 2021). And, if a covered credit union 
has $15 billion in assets on March 31, 2021, but had less than $15 
billion on March 31, 2020, it is not required to conduct a stress test 
in calendar year 2022. Similarly, a covered credit union is not 
designated as a tier III covered credit union based on its total assets 
as of March 31, 2021.
    Accordingly, a FICU would not be newly designated as a tier I, II, 
or III covered credit union until March 31, 2022, and such designation 
will not be effective until January 1, 2023. This temporary regulatory 
relief reflects that much of the balance sheet growth since the start 
of the COVID-19 Pandemic, especially growth related to member deposits, 
does not generally reflect changes in FICUs' risk profiles and was 
unexpected by the FICU. Based on this analysis, the Board finds that 
this temporary change will not undermine the purpose behind the capital 
planning and stress testing requirements and will permit FICUs an 
additional year to either reduce their total assets to under the 
applicable asset-size threshold or prepare for compliance with capital 
planning and stress testing requirements.
    As discussed, the interim final rule also makes a conforming change 
to the measurement date for determining oversight by ONES. Currently, 
ONES oversees FICUs with $10 billion or more in assets. Similar to the 
measurement date for capital planning and stress testing requirements, 
FICUs reporting assets of $10 billion or more on March 31 each year 
will be reassigned to ONES on January 1 of the following year. Under 
the interim final rule, the NCUA will use financial data as of March 
31, 2020, instead of March 31, 2021, to determine the supervision of 
natural person credit unions for calendar year 2022.
    The interim final rule also makes conforming amendments to other 
NCUA regulations that refer to supervision by ONES. These changes 
replace specific references to the $10 billion asset threshold with 
cross-references to the threshold, as temporarily modified, in part 
702.

B. Reservation of Authority

    The temporary regulatory relief described previously is generally 
available to FICUs that otherwise would have crossed the tier I, II, or 
III thresholds in part 702 or become subject to ONES supervision. 
However, there may be limited instances in which such regulatory relief 
would be inappropriate. To address such situations, the Board may use 
existing reservations of authority in part 702 to designate a FICU as 
subject to ONES supervision or a tier I, II, or III credit union. When 
making any such determination, the Board would consider all relevant 
factors affecting the FICU's safety and soundness, including, but not 
limited to, the extent of asset growth of the FICU since March 31, 
2020; the causes of such growth, including whether growth occurred as a 
result of mergers or purchase and assumption transactions; whether such 
growth is likely to be temporary or permanent; whether the FICU has 
become involved in any additional activities since March 31, 2020, and, 
if so, the risk of such activities; and the type of assets held by the 
FICU. In particular, as noted in the preceding sentence, the NCUA will 
consider whether the FICU crossed the threshold due to a merger or 
purchase and assumption transaction that significantly increases the 
FICU's asset size. Asset growth that occurs as a result of a merger or 
purchase and assumption transaction is planned, unlike the growth that 
many FICUs have experienced since the beginning of the COVID-19 
Pandemic. FICUs crossing a regulatory threshold as a result of a merger 
or purchase and assumption transaction therefore have had the 
opportunity to plan and prepare for the change in regulatory 
requirements. The Board notes that it may designate a FICU as a tier I, 
II, or III credit union even in the absence of a merger or purchase and 
assumption transaction, as significant asset growth at a FICU may 
reflect a material change in the business model, risk profile, or 
complexity of the FICU. Nonetheless, the NCUA expects to apply the 
reservation of authority only in limited circumstances.

C. Request for Comments

    The Board seeks comment on all aspects of this interim final rule. 
In particular, the Boards seeks comment on the duration of the 
temporary regulatory relief and on the advantages and disadvantages of 
using an alternative measurement date. Commenters are invited to 
describe other dates and the advantages and disadvantages of any such 
dates.

III. Regulatory Procedures

A. Administrative Procedure Act

    The Board is issuing this interim final rule without prior notice 
and the opportunity for public comment and the delayed effective date 
ordinarily prescribed by the Administrative Procedure Act (APA). 
Pursuant to section 553(b)(B) of the APA, general notice and the 
opportunity for public comment are not required with respect to a 
rulemaking when an ``agency for good cause finds (and incorporates the 
finding and a brief statement of reasons therefor in the rules issued) 
that notice and public procedure thereon are impracticable, 
unnecessary, or contrary to the public interest.''
    The Board believes that the public interest is best served by 
implementing the interim final rule immediately upon publication in the 
Federal Register. As discussed previously, the interim final rule 
provides temporary regulatory relief to FICUs crossing certain 
regulatory asset thresholds in 2020 and 2021. Many FICUs have 
experienced dramatic and unexpected increases in their balance sheets 
as a result of their efforts to support the economy during the ongoing 
COVID-19 Pandemic. The interim final rule facilitates the ability of 
FICUs to temporarily defer the implementation of certain regulatory 
thresholds that would not have been applicable had the FICUs not 
experienced this balance sheet growth. Therefore, the interim final 
rule temporarily exempts FICUs from new requirements that may have 
otherwise been applicable due to growth. The interim final rule does 
not impose any requirements on any FICUs.
    The Board believes that the public interest is best served by 
making the interim final rule effective immediately upon publication in 
the Federal Register. The Board believes that issuing the interim final 
rule will ensure that FICUs will not be unnecessarily required to 
immediately comply with certain threshold-based regulatory standards 
given the FICU's unexpected growth and likely long-term risk profile 
and activities. The interim final rule also will provide FICUs time to 
comply with new threshold-based regulatory standards and avoid 
unexpected and unplanned costs, allowing the FICU to continue to focus 
on the provision of affordable credit to members during this time of 
economic stress. In addition, the

[[Page 15400]]

Board believes that providing a notice and comment period prior to 
issuance of the interim final rule is impracticable, as FICUs may start 
incurring transition costs now in anticipation of needing to comply 
with additional requirements if its asset classification would 
otherwise change on March 31, 2021. For these reasons, the Board finds 
there is good cause consistent with the public interest to issue the 
interim final rule without advance notice and comment.
    The APA also requires a 30-day delayed effective date, except for: 
(1) Substantive rules which grant or recognize an exemption or relieve 
a restriction; (2) interpretative rules and statements of policy; or 
(3) as otherwise provided by the agency for good cause. Because the 
rules relieve a restriction, the interim final rule is exempt from the 
APA's delayed effective date requirement. The reasons previously 
discussed for forgoing prior notice and comment would also separately 
justify this determination.
    While the Board believes that there is good cause to issue the rule 
without advance notice and comment and with an immediate effective 
date, the Board is interested in the views of the public and requests 
comment on all aspects of the interim final rule.

B. Congressional Review Act

    For purposes of the Congressional Review Act, the OMB makes a 
determination as to whether a final rule constitutes a ``major'' rule. 
If a rule is deemed a ``major rule'' by the Office of Management and 
Budget (OMB), the Congressional Review Act generally provides that the 
rule may not take effect until at least 60 days following its 
publication.
    The Congressional Review Act defines a ``major rule'' as any rule 
that the Administrator of the Office of Information and Regulatory 
Affairs of the OMB finds has resulted in or is likely to result in (A) 
an annual effect on the economy of $100,000,000 or more; (B) a major 
increase in costs or prices for consumers, individual industries, 
Federal, State, or local government agencies or geographic regions, or 
(C) significant adverse effects on competition, employment, investment, 
productivity, innovation, or on the ability of United States-based 
enterprises to compete with foreign-based enterprises in domestic and 
export markets.
    For the same reasons set forth above, the Board is adopting this 
interim final rule without the delayed effective date generally 
prescribed under the Congressional Review Act. The delayed effective 
date required by the Congressional Review Act does not apply to any 
rule for which an agency for good cause finds (and incorporates the 
finding and a brief statement of reasons therefor in the rule issued) 
that notice and public procedure thereon are impracticable, 
unnecessary, or contrary to the public interest.
    As required by the Congressional Review Act, the Board will submit 
the final rule and other appropriate reports to Congress and the 
Government Accountability Office for review.

C. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in 
which an agency by rule creates a new paperwork burden on regulated 
entities or modifies an existing burden (44 U.S.C. 3507(d)). For 
purposes of the PRA, a paperwork burden may take the form of a 
reporting, recordkeeping, or a third-party disclosure requirement, 
referred to as an information collection. The interim final rule will 
not affect any existing or impose any new information collection 
requirements.

D. Executive Order 13132

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their actions on state and local interests. The 
NCUA, an independent regulatory agency as defined in 44 U.S.C. 3502(5), 
voluntarily complies with the executive order to adhere to fundamental 
federalism principles.
    This interim final rule does not have substantial interim effects 
on the states, on the relationship between the National Government and 
the states, or on the distribution of power and responsibilities among 
the various levels of government. The NCUA has therefore determined 
that this rule does not constitute a policy that has federalism 
implications for purposes of the executive order.

E. Assessment of Federal Regulations and Policies on Families

    The NCUA has determined that this rule will not affect family well-
being within the meaning of section 654 of the Treasury and General 
Government Appropriations Act, 1999.\11\
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    \11\ Public Law 105-277, 112 Stat. 2681 (1998).
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F. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires that when 
an agency issues a proposed rule or a final rule pursuant to the APA or 
another law, the agency must prepare a regulatory flexibility analysis 
that meets the requirements of the RFA and publish such analysis in the 
Federal Register. Specifically, the RFA normally requires agencies to 
describe the impact of a rulemaking on small entities by providing a 
regulatory impact analysis. For purposes of the RFA, the Board 
considers credit unions with assets less than $100 million to be small 
entities.
    Rules that are exempt from notice and comment are also exempt from 
the RFA requirements, including conducting a regulatory flexibility 
analysis, when among other things the agency for good cause finds that 
notice and public procedure are impracticable, unnecessary, or contrary 
to the public interest.\12\ Accordingly, the NCUA is not required to 
conduct a regulatory flexibility analysis for the reasons stated above 
relating to the good cause exemption. In addition, this interim final 
rule applies only to FICUs that have or will have $10 billion or more 
in assets as of March 31, 2021. Nevertheless, the Board welcomes 
comments on the effect this interim final rule may have on small 
entities.
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    \12\ 5 U.S.C. 553(a).
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List of Subjects

12 CFR Part 700

    Credit unions.

12 CFR Part 702

    Credit unions, Reporting and recordkeeping requirements.

12 CFR Part 708a

    Credit unions, Reporting and recordkeeping requirements.

12 CFR Part 708b

    Bank deposit insurance, Credit unions, Reporting and recordkeeping 
requirements.

12 CFR Part 790

    Organization and functions (Government agencies).

    By the NCUA Board on March 18, 2021.
Melane Conyers-Ausbrooks,
Secretary of the Board.

    For the reasons discussed in the preamble, the Board is amending 12 
CFR parts 700, 702, 708a, 708b, and 790 as follows:

PART 700--DEFINITIONS

0
1. The authority citation for part 700 continues to read as follows:

    Authority:  12 U.S.C. 1752, 1757(6), 1766.


0
2. Effective March 23, 2021, in Sec.  700.2, revise the definitions of 
``Regional Director'' and ``Regional Office'' to read as follows:

[[Page 15401]]

Sec.  700.2   Definitions.

* * * * *
    Regional Director means the representative of NCUA in the 
designated geographical area in which the office of the federally 
insured credit union is located or, for covered credit unions under 
part 702 of this chapter, the Director of the Office of National 
Examinations and Supervision.
    Regional Office means the office of NCUA located in the designated 
geographical areas in which the office of the federally insured credit 
union is located or, for covered credit unions under part 702 of this 
chapter, the Office of National Examinations and Supervision.
* * * * *

PART 702--CAPITAL ADEQUACY

0
3. The authority citation for part 702 continues to read as follows:

    Authority:  12 U.S.C. 1766(a), 1790d.


0
4. Effective January 1, 2022, in Sec.  702.1(c), revise the third 
sentence to read as follows:


Sec.  702.1  Authority, purpose, scope, and other supervisory 
authority.

* * * * *
    (c) * * * Subpart C applies capital planning and stress testing to 
credit unions defined as covered credit unions under Sec.  702.302. * * 
*
* * * * *

0
5. Effective March 23, 2021, revise Sec.  702.2(a) to read as follows:


Sec.  702.2   Definitions.

* * * * *
    (a) Appropriate Regional Director means the director of the NCUA 
Regional Office having jurisdiction over federally insured credit 
unions in the state where the affected credit union is principally 
located or, for covered credit unions under this part, the Director of 
the Office of National Examinations and Supervision.
* * * * *

0
6. Effective March 23, 2021, in Sec.  702.502, revise the definition of 
``Covered credit union'' to read as follows:


Sec.  702.502  Definitions.

* * * * *
    Covered credit union means a federally insured credit union whose 
assets are $10 billion or more.
    (1) Timing. A credit union that crosses the asset threshold as of 
March 31 of a given calendar year is subject to the applicable 
requirements of this subpart in the following calendar year.
    (2) Regulatory relief for 2021 and 2022. If a federally insured 
credit union reaches or crosses an asset size threshold under this 
subpart on March 31, 2021, the NCUA will use the assets the federally 
insured credit union reported on March 31, 2020 for the purpose of 
determining the applicability of those thresholds.
* * * * *

PART 708a--BANK CONVERSIONS AND MERGERS

0
7. The authority citation for part 708a continues to read as follows:

    Authority:  12 U.S.C. 1766, 1785(b), and 1785(c).


0
8. Effective March 23, 2021, in Sec.  708a.101, revise the second 
sentence of the definition of ``Regional Director'' to read as follows:


Sec.  708a.101   Definitions.

* * * * *
    Regional Director * * * For corporate credit unions and natural 
person credit unions defined as covered credit unions under part 702 of 
this chapter, Regional Director means the director of NCUA's Office of 
National Examinations and Supervision.
* * * * *

0
9. Effective March 23, 2021, in Sec.  708a.301, revise the second 
sentence of the definition of ``Regional Director'' to read as follows:


Sec.  708a.301   Definitions.

* * * * *
    Regional Director * * * For corporate credit unions and natural 
person credit unions defined as covered credit unions under part 702 of 
this chapter, Regional Director means the director of NCUA's Office of 
National Examinations and Supervision.
* * * * *

PART 708b--MERGERS OF INSURED CREDIT UNIONS INTO OTHER CREDIT 
UNIONS; VOLUNTARY TERMINATION OR CONVERSION OF INSURED STATUS

0
10. The authority citation for part 708b continues to read as follows:

    Authority:  12 U.S.C. 1752(7), 1766, 1785, 1786, 1789.


0
11. Effective March 23, 2021, in Sec.  708b.2, revise the second 
sentence of the definition of ``Regional Director'' to read as follows:


Sec.  708b.2   Definitions.

* * * * *
    Regional Director * * * For corporate credit unions and natural 
person credit unions defined as covered credit unions under part 702 of 
this chapter, Regional Director means the director of NCUA's Office of 
National Examinations and Supervision.
* * * * *

PART 790--DESCRIPTION OF NCUA; REQUESTS FOR AGENCY ACTION

0
12. The authority citation for part 790 continues to read as follows:

    Authority:  12 U.S.C. 1766, 1789, 1795f.


0
13. Effective March 23, 2021, in Sec.  790.2(c)(2), revise the first 
sentence to read as follows:


Sec.  790.2   Central and field office organization.

* * * * *
    (c)
    (2) * * * Similar to a Regional Director, the Director of the 
Office of National Examinations and Supervision manages NCUA's 
supervisory program over credit unions; however, it oversees the 
activities for corporate credit unions and of natural person credit 
unions defined as covered credit unions under part 702 of this chapter, 
in accordance with established policies. * * *
* * * * *
[FR Doc. 2021-05967 Filed 3-19-21; 4:15 pm]
BILLING CODE 7535-01-P