NCUA Should Conduct Broader Evaluation of Amendments to Subordinated Debt Rule, CUNA, NAFCU and Inclusive Tell Agency

NCUA needs to conduct a broader evaluation of proposed amendments to its 2020 Subordinated Debt Rule, CUNA, NAFCU and Inclusiv have told the agency in a joint letter.

As CUToday.info reported, the proposed rule would amend the definition of “grandfathered secondary capital” to include secondary capital issued to the U.S. Government or one of its subdivisions under an application approved before Jan. 1, 2022.

It was proposed during the board’s September 2021 meeting.

“The proposed rule ensures that LICUs that have already submitted [Emergency Capital Investment Program (ECIP)] applications will not need to revise an accompanying secondary capital plan to conform with new procedural requirements in the Subordinated Debt Rule when ECIP investment decisions are made in 2022,” wrote the organizations.