Prompt Corrective Action (PCA)

Has the NCUA made any changes to its Prompt Corrective Action (PCA) Rule?

Yes. At the NCUA board meeting on May 21, 2020, the NCUA Board issued an interim final rule (IFR) regarding PCA. The IFR makes two temporary changes to the PCA regulations to help ensure federally-insured credit unions (FICUs) remain operational and liquid during the COVID-19 crisis. First, the IFR amends §702.201 to temporarily waive the earnings retention requirement for any credit union that is adequately capitalized; second, the IFR modifies and simplifies §702.206(c) with respect to net worth restoration plans for FICUs who fall to undercapitalized because of share growth. These temporary modifications will be in place until Dec. 31, 2020.