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.

NCUA is requesting comments on two proposals that would eliminate obsolete regulations, as well as unduly burdensome and duplicative requirements in the Code of Federal Regulations.

Thresholds Increase for Major Assets Prohibition of the Depository Institution Management Interlocks Act Rule - 12 CFR 711.3 (c) and 12 CFR 711.6(b)(2)

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.

Requirements for Insurance - 12 CFR 741

The NCUA Board is also proposing a rule to streamline its share insurance regulations. The sections that are proposed for removal primarily refer federally insured state-chartered credit unions (FISCUs) to other NCUA regulations. These proposed changes are intended to reduce duplication.