NCUA Definition of Small Credit Union Hotly Debated

Thursday’s decision by the NCUA Board to increase the asset limit for the definition of a small credit union from $50 million to $100 million came on the heels of a healthy debate regarding where the appropriate limit should lie. NCUA Board member Mark McWatters recommended that the limit be set at $550 million in keeping with the level set for banks. In the alternative, NCUA could adopt a 3-tier system where credit unions under $100 million could be exempted from certain regulations and credit unions with assets between $100 million to $550 million could be subject to a lighter version of the regulatory requirements. NCUA Chair Debbie Matz replied that the limit for credit unions must be based on an economic analysis and legal rationale specific to credit unions. [9/21/15]