NCUA Announces Latest Round of Deregulation Proposals

The NCUA has announced its two latest rounds of proposed regulatory changes under the agency's Deregulation Project, continuing efforts to eliminate outdated, duplicative, and unnecessarily burdensome requirements while maintaining credit union safety and soundness.

Announced on October 14 and October 20, 2026, the twelfth and thirteenth rounds include six proposed changes aimed at streamlining compliance, reducing administrative costs, and providing greater operational flexibility for credit unions.

Thirteenth Round - Announced October 20, 2026

Nonconforming Investment Special Reserve - 12 CFR 741.3(a)

The NCUA proposes eliminating the requirement for federally insured, state-chartered credit unions (FISCUs) to maintain a special reserve for certain nonconforming investments. The proposal would also remove related references in the agency's capital, investment, and share insurance regulations. The changes are intended to streamline compliance, reduce regulatory burden, and provide greater flexibility while maintaining safety and soundness and protecting the National Credit Union Share Insurance Fund.

Conversion to a State-Chartered Credit Union - 12 CFR 741.7

The NCUA proposes removing an outdated regulation governing the continuation of federal share insurance when a federal credit union converts to a state charter. Because these requirements are already addressed in the NCUA's Chartering and Field of Membership Manual, eliminating the duplicative provision would simplify the regulatory framework, improve clarity, and reduce unnecessary compliance complexity.

Notification to Members/Shareholders - 12 CFR 745.13

The NCUA proposes modernizing share insurance notification requirements to give federally insured credit unions greater flexibility in communicating coverage information to members. The proposal would ease existing hard-copy requirements while preserving the obligation to provide share insurance information. The changes are intended to reduce administrative costs, simplify compliance, and help ensure members have access to accurate, up-to-date information.

Twelfth Round - Announced October 14, 2026

Fidelity Bond and Insurance Coverage - 12 CFR 704 and 713

The NCUA proposes simplifying fidelity bond and insurance coverage requirements for federally insured credit unions and corporate credit unions. The changes would eliminate or modify certain procedural requirements related to bond purchases and renewals, approved bond forms, coverage amounts, and deductibles. Credit unions would continue to be required to maintain adequate protection against fraud, theft, and other covered losses. The proposal is intended to reduce administrative costs and provide greater flexibility while preserving appropriate safeguards.

Incidental Powers - 12 CFR 721

The NCUA proposes clarifying the process for federal credit unions seeking approval to engage in activities not already recognized as authorized incidental powers. The proposal would make clear that credit unions may apply directly to the NCUA Board without first obtaining an advisory opinion from the agency's Office of General Counsel. The change is intended to eliminate regulatory confusion, simplify the approval process, and provide greater clarity for credit unions exploring new activities.

Central Liquidity Facility - 12 CFR 725

The NCUA proposes modernizing regulations governing the Central Liquidity Facility (CLF) by incorporating certain changes adopted during the COVID-19 pandemic, eliminating outdated provisions, and simplifying membership and reporting requirements. The proposal would also provide greater flexibility in adjusting capital stock subscriptions and make technical revisions to improve regulatory clarity. The changes are intended to reduce compliance burdens while preserving the CLF's role as an emergency liquidity resource for credit unions.

Credit unions can review the proposed rules and submit comments through Regulations.gov.

For additional information, including proposal summaries and comment opportunities, visit the NCUA Deregulation Project webpage.