NATIONAL CREDIT UNION ADMINISTRATION ISSUES PROPOSED RULE: BANK CONVERSIONS AND MERGERS, SUBPART A-CONVERSION OF INSURED CREDIT UNIONS TO MUTUAL SAVINGS BANKS

WASHINGTON, Feb. 11 -- National Credit Union Administration has issued a proposed rule called: Bank Conversions and Mergers, Subpart A-Conversion of Insured Credit Unions to Mutual Savings Banks.

The proposed rule was published in the Federal Register on Feb. 11 by Melane Conyers-Ausbrooks, Secretary of the Board.

Summary: The NCUA Board (Board) is proposing to amend its regulations governing the conversion of insured credit unions into banks. The NCUA Board proposes to eliminate certain prescriptive procedural, disclosure, and communication requirements. This action reduces unnecessary regulatory burdens and provides credit union boards of directors with greater flexibility to exercise their business judgment. The intended effect of thes...