NCUA Advances Deregulation Efforts with Eleventh Round Proposal

Posted by Erin Hall on May 6, 2026

The National Credit Union Administration (NCUA) announced an additional round of proposed changes under its Deregulation Project, which reviews and updates NCUA rules to better align with credit unions safety and soundness.

NCUA is seeking comment on two proposals to remove obsolete, duplicative, or unnecessarily burdensome requirements from the Code of Federal Regulations.

Round 11 Proposals:

• Increase thresholds for management interlocks (12 CFR 711)

NCUA proposes raising the major assets prohibition threshold under the Depository Institution Management Interlocks Act (DIMIA) to $10 billion. This threshold helps identify when shared management between two large institutions could create competitive concerns, even if they do not operate in the same community. DIMIA authorizes NCUA to adjust the threshold for inflation and market changes.

• NCUA also proposes removing 12 CFR 711.6(b)(2), which currently describes situations where NCUA would presume an interlock would not create a monopoly or substantially lessen competition.
• Impact to credit unions: Credit unions near or above the prior threshold may face fewer interlock-related restrictions as the threshold increases, potentially expanding board and senior management candidate pools. Credit unions should still evaluate interlock arrangements for compliance and any anticompetitive risk.

Streamline share insurance rules (12 CFR 741)

• NCUA proposes removing sections in Part 741 that largely refer federally insured state-chartered credit unions (FISCUs) to other NCUA rules, reducing duplication and improving clarity.
• Impact to credit unions: Primarily affects FISCUs by simplifying where requirements are stated, which may reduce time spent cross-referencing regulations and support more efficient compliance reviews. Credit unions should confirm their internal policies and procedures still map to the remaining, controlling requirements.

Background: NCUA Deregulation Project

In 2025, the National Credit Union Administration launched the Deregulation Project, a comprehensive initiative to review and revise existing regulations. The effort focuses on rules that are outdated, duplicative of statute, intended as guidance rather than enforceable requirements, or unnecessarily burdensome.

Overall, the Deregulation Project signals a shift toward less prescriptive and more flexible rulemaking. If finalized, these changes would provide meaningful regulatory relief by eliminating examination expectations that do not meaningfully contribute to safety and soundness.

How We Are Engaging

GoWest is prioritizing advocacy efforts that promote a regulatory framework that is transparent, predictable, and aligned with statute. These early deregulatory actions reflect meaningful progress, and we will continue building on this momentum in 2026.

Find more information and details on the proposed deregulations here.

Posted in Advocacy on the Move, Regulatory Advocacy.