Deregulation proposals tackle DIMIA threshold, share insurance regulations

The 11th round of proposals issued under the NCUA’s Deregulation Project would increase the Depository Institution Management Interlocks Act (DIMIA) threshold and streamline share insurance regulations.

Specifically, the DIMIA proposal:

• Raises the asset size cutoff for the DIMIA management interlock ban to $10 billion;
• Deletes rule language listing situations the agency automatically treats as posing no competition concerns;
• Updates the ban preventing a director or senior officer at a credit union over $2.5 billion in assets from serving in the same role at an unrelated depository institution over $1.5 billion in assets, regardless of location. Under the proposal, the ban applies only when both institutions exceed $10 billion in assets; and 
• Deletes a specific list of pre-approved interlock scenarios. Arrangements would instead be reviewed case-by-case under the rule's remaining standards rather than receiving an automatic pass.

The second proposal would update share insurance regulations by removing sections that primarily refer federally insured, state-chartered credit unions to other NCUA regulations. These changes are intended to reduce duplication and would not change compliance obligations.

America’s Credit Unions is reviewing the proposals and will issue a Regulatory Comment Alert. Comments are due within 60 days.