SUPPLEMENTARY INFORMATION:

I. Introduction

A. Background

The Board issued IRPS 11-02 in 2011 following the 2008-2009 financial crisis and the restructuring of the corporate credit union system. As part of that restructuring, the Board believed some groups of consumer credit unions would form new corporate credit unions. The Board sought to provide uniform requirements for prospective new corporate federal credit unions (FCUs) and NCUA's standards for evaluating applications. On September 24, 2010, the Board issued a proposed IRPS setting forth the requirements and process for chartering corporate FCUs because previous corporate chartering guidance had been withdrawn.^[1] After reviewing public comments, the Board issued a final IRPS on February 24, 2011.^[2] The final IRPS set forth requirements for prospective new corporate FCUs and NCUA's standards for evaluating applications. It also included detailed timelines for processing charter applications. NCUA also issued the Federal Corporate Credit Union Chartering Manual (chartering manual) as a companion resource to IRPS 11-02.^[3]

Following the issuance of IRPS 11-02 and the chartering manual, the Board chartered a new corporate FCU as part of restructuring the corporate system. The Board, however, has not chartered any new corporate FCU in the last 10 years.

The Board proposed to rescind IRPS 11-02 on January 14, 2026, because it is no longer needed.^[4] The Board stated its belief that it is reasonable to rely on the chartering manual for NCUA guidance on corporate FCU chartering and that the proposed rule may reduce redundancy and eliminate potential confusion by providing for only one source on chartering federal corporate credit unions.

B. Legal Authority

The Board is issuing this final rule pursuant to its authority under the FCU Act. Under the FCU Act, NCUA is the chartering and supervisory authority for FCUs and the federal supervisory authority for federally insured credit unions (FICUs).^[5] The FCU Act grants NCUA a broad mandate to issue regulations governing both FCUs and all FICUs. Section 120 of the FCU Act is a general grant of regulatory authority and authorizes the Board to prescribe rules and regulations for the administration of the FCU Act.^[6] Section 207 of the FCU Act is a specific grant of authority over share insurance coverage, conservatorships, and liquidations.^[7] Section 209 of the FCU Act is a plenary grant of regulatory authority to issue rules and regulations necessary or appropriate to carry out its role as share insurer for all FICUs.^[8] Accordingly, the FCU Act grants the Board broad rulemaking authority to ensure that the federally insured credit union industry ( printed page 50685) and the Share Insurance Fund remain safe and sound.

The FCU Act also includes an express grant of authority for the Board to subject federally chartered central, or corporate, credit unions to such rules, regulations, and orders as the Board deems appropriate.^[9]

II. Final Rule

A. Overview

This action follows publication of the proposed rule and takes into consideration the comments received on the proposal. By the close of the public comment period on March 16, 2026, the Board had received 10 public comments. Comments were submitted by individuals, state credit union leagues, and national credit union trade associations. After careful consideration of the issue raised by the commenters, the Board has decided to adopt the proposal without change.

B. Discussion of Public Comments

This section of the preamble discusses the significant issues raised by the commenters, and the Board's responses to the comments.

Two individual commenters were opposed to the proposed rule. These commenters expressed general concerns about NCUA's deregulatory efforts but did not have comments specific to the proposed rule.

Most commenters supported the proposed rule. Commenters discussed how the IRPS is redundant with the chartering manual and that removing it will reduce confusion as entities would only have one source to look for guidance on chartering corporate credit unions. Commenters generally stated this would lower regulatory burden and streamline guidance without affecting safety or soundness. The Board agrees and expects the rescission of IRPS 11-02 to reduce regulatory burden generally by limiting the number of sources that FCUs must check to ensure compliance with laws and regulations. In conjunction with removing IRPS 11-02, NCUA also intends to make technical updates to the chartering manual. For example, the changes would update terminology related to the responsible office and language reflecting electronic submission.

One commenter who supported the rule generally, strongly encouraged NCUA to ensure that the chartering manual remains easily accessible on the agency's public website, that any updates are clearly marked and dated, and that the agency provides notice and an opportunity for public comment before implementing any substantive revisions. The Board intends for the chartering manual to remain a public document. However, the manual may be updated in the future without notice and comment rulemaking as it is not a binding rule and instead serves a guidance.^[10]

III. Regulatory Procedures

A. Executive Orders 12866, 13563, and 14192

Pursuant to Executive Order 12866 (“Regulatory Planning and Review”), a determination must be made whether a regulatory action is significant and therefore subject to review by the Office of Information and Regulatory Affairs (OIRA), within the Office of Management and Budget (OMB) in accordance with the requirements of the Executive Order.^[11] Executive Order 13563 (“Improving Regulation and Regulatory Review”) supplements and reaffirms the principles, structures, and definitions governing contemporary regulatory review established in Executive Order 12866.^[12] This final rule was drafted and reviewed in accordance with Executive Order 12866 and Executive Order 13563. OIRA has determined that this final rule is not a “significant regulatory action” as defined by section 3(f) of Executive Order 12866.

Executive Order 14192 (“Unleashing Prosperity Through Deregulation”) requires that any new incremental costs associated with new regulations shall, to the extent permitted by law, be offset by the elimination of existing costs associated with at least 10 prior regulations.^[13] This final rule is considered an Executive Order 14192 deregulatory action.

B. Regulatory Flexibility Act

The Regulatory Flexibility Act ^[14] generally requires an agency to conduct a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. If the agency makes such a certification, it shall publish the certification at the time of publication of either the proposed rule or the final rule, along with a statement providing the factual basis for such certification.^[15] For purposes of this analysis, NCUA considers small credit unions to be those having under $100 million in assets.^[16] The Board fully considered the potential economic impacts of the regulatory amendments on small credit unions.

There are no corporate credit unions under $100 million in assets. Also, the Board finds it unlikely that prospective corporate credit unions would be under that threshold. Accordingly, NCUA certifies the final rule will not have a significant economic impact on a substantial number of small credit unions.

C. Paperwork Reduction Act

The Paperwork Reduction Act of 1995 (PRA) generally provides that an agency may not conduct or sponsor, and not withstanding any other provision of law, a person is not required to respond to, a collection of information, unless it displays a currently valid OMB control number. The PRA applies to rulemaking in which an agency creates a new or amends existing information collection requirements. For purposes of the PRA, an information collection requirement may take the form of a reporting, recordkeeping, or a third-party disclosure requirement. NCUA has determined that the rescission of the IRPS does not create a new information collection or revise an existing information collection as defined by the PRA.

D. Executive Order 13132 on Federalism

Executive Order 13132 encourages independent regulatory agencies to consider the impact of their actions on state and local interests.^[17] NCUA, an agency as defined in 44 U.S.C. 3502(5), voluntarily complies with the executive order to adhere to fundamental federalism principles. This rescission removes guidance regarding procedures and timelines for chartering federal corporate credit unions and does not impact state-chartered corporate credit unions. The rulemaking therefore does not have direct effect on the states, the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government.

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E. Assessment of Federal Regulations and Policies on Families

NCUA has determined that this final rule will not affect family well-being within the meaning of Section 654 of the Treasury and General Government Appropriations Act, 1999.^[18] The rescission is exclusively concerned with chartering federal corporate credit unions. While the final rule is intended to maintain a strong corporate system to support consumer credit unions in their provision of financial services to members, the potential positive effect on family well-being, including financial well-being is, at most, indirect.

F. Congressional Review Act

Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996, also known as the Congressional Review Act (CRA), generally provides for congressional review of agency rules.^[19] NCUA must submit a report to Congress and the Comptroller General when it issues a final rule, as defined by the CRA.^[20] An agency rule, in addition to being subject to congressional oversight, may also be subject to a delayed effective date if the rule is a “major rule.” OIRA has determined that this rule is not a “major rule” within the meaning of the relevant sections of the CRA. NCUA will also file appropriate reports with Congress and the Comptroller General so this rule may be reviewed.

91 FR 50684