NAFCU details NCUA PPP rules in new alert to CUs

first_img continue reading » NCUA headquarters Earlier this month, the NCUA Board approved an interim final rule to make conforming amendments to capital adequacy rules consistent with the CARES Act. Under the rule, paycheck protection program loans will receive a zero percent risk weighting under the NCUA’s risk-based net worth requirement. NAFCU outlines what credit unions should know regarding the rule in a new Final Regulation Alert.NAFCU has previously urged the agency to grant additional capital flexibility, as well as place a moratorium on exams, and more, and will continue to advocate for additional relief and guidance.In the alert, NAFCU highlights that the rule:provides that if a PPP loan is pledged as collateral for a non-recourse loan that is provided as part of the Board of Governors of the Federal Reserve System’s Paycheck Protection Program Liquidity Facility (PPPLF), the pledged loan can be excluded from a credit union’s calculation of total assets for the purposes of calculating its net worth ratio; andcenter_img ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more