[Federal Register Volume 78, Number 210 (Wednesday, October 30, 2013)]
[Rules and Regulations]
[Pages 64883-64885]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-25716]



12 CFR Parts 741 and 748

RIN 3313-AE25

Filing Financial and Other Reports

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule.


SUMMARY: The NCUA Board (Board) is issuing a final rule to amend its

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regulations regarding filing financial, statistical, and other reports 
and credit union profiles by requiring all federally insured credit 
unions (FICUs) to file this information electronically using NCUA's 
information management system or other electronic means specified by 
NCUA. Under the current rule, FICUs are required to file this 
information online only if they have the capacity to do so.

DATES: This rule is effective January 1, 2014.

FOR FURTHER INFORMATION CONTACT: Sarah Chung, Staff Attorney, Office of 
General Counsel, at 1775 Duke Street, Alexandria, Virginia 22314-3428, 
telephone (703) 518-1178, or Mark Vaughan, Director, Division of 
Analytics and Surveillance, Office of Examination and Insurance, at 
1775 Duke Street, Alexandria, Virginia 22314-3428, telephone (703) 518-


I. Background and Proposal
II. Summary of Public Comments and Final Rule
III. Regulatory Procedures

I. Background and Proposal

A. Background

    The Federal Credit Union Act (Act) provides NCUA with broad 
authority to require FICUs, including corporate credit unions, to 
submit financial data and other information as required by the 
Board.\1\ The Act directs each FICU to make reports of condition to the 
Board on dates selected by the Board.\2\ The Board has broad discretion 
to set the conditions and information requirements for such reports.\3\ 
More specifically, NCUA requires FICUs to submit financial reports, 
reports of officials, credit union profiles, and other reports.\4\

    \1\ 12 U.S.C. 1756, 1766, 1781, and 1782.
    \2\ Id.
    \3\ Id.
    \4\ 12 CFR 741.6 and 748.1.

    Section 741.6(a) of NCUA's regulations requires FICUs to file 
financial, statistical, and other reports, including call reports. 
Section 748.1 of NCUA's regulations requires the president or managing 
official of each FICU to certify compliance with a variety of 
requirements in its credit union profile.
    Under NCUA's current regulations, a FICU must use NCUA's 
information management system, or other electronic means specified by 
NCUA, to submit its reportable data online, unless it is unable to do 
so.\5\ In this case, a FICU must file written reports in accordance 
with NCUA instructions.

    \5\ Id. Currently, corporate credit unions use an electronic 
system for submitting data online different from the system used by 
natural person FICUs.

B. July 2013 Proposal

    Executive Order 13579 provides that independent agencies, including 
NCUA, should consider if they can modify, streamline, expand, or repeal 
existing rules to make their programs more effective and less 
burdensome. NCUA seeks to reduce operating costs and promote 
environmentally responsible practices. NCUA estimates it costs the 
agency $125 per filer per quarter to process manual filings of call 
reports alone. In July 2013, NCUA proposed to require all FICUs to 
submit call reports and other data electronically, and to update their 
credit union profiles online to reduce the expense of printing and 
mailing paper forms and other processing costs.\6\ Under the proposed 
rule, filing manually would no longer be an option.

    \6\ 78 FR 46850 (Aug. 2, 2013).

    Additionally, NCUA would increase efficiency, enhance accuracy of 
data, and provide a secure access portal that is the sole means for 
FICUs to submit, edit, and view data that NCUA collects. This permits 
FICUs to submit data securely to NCUA from any computer with Internet 
access. To assist FICUs making this transition, NCUA already provides 
instructions on how to report online and has posted a ``frequently 
asked questions'' section on NCUA's Web site.

II. Summary of Public Comments and Final Rule

    NCUA received 12 comments on the proposed rule. The comments were 
from 3 trade associations representing credit unions, 6 state credit 
union leagues (some of these leagues represent more than one state), a 
state-chartered, federally insured credit union, a federal credit 
union, and a state regulators association.
    Six commenters generally supported the proposed rule. Some 
commenters believed the proposal would lead to increased efficiencies 
and enhance the accuracy and availability of data. Others maintained 
that NCUA appropriately considered the burden on filers and made 
hardware and training available to help small credit unions.
    Six commenters generally did not support the proposed rule. Some 
commenters expressed concerns about the hardships that electronic 
filing may have on the smallest credit unions who have limited staffing 
and electronic resources. Others did not believe the proposed rule 
would sufficiently reduce costs and increase efficiency for NCUA, and 
found that manual filings were not a significant burden on NCUA's 
    Commenters also made other recommendations. Some of these 
recommendations include having NCUA: 1) Change the required filing date 
for call reports to be 30 days after the end of the quarter; 2) 
encourage manual filers to move toward electronic filing within a 
reasonable amount of time, the duration of which should depend on the 
particular credit union; and 3) continue to work with small credit 
unions, through its Office of Small Credit Union Initiatives (OSCUI), 
to help move them toward electronic filing.
    The Board has considered all public comments carefully. While NCUA 
appreciates the commenters' concerns for small credit unions, NCUA 
believes that electronic filing will save time and resources, as well 
as increase the efficiency in processing all reports. NCUA believes 
that once manual filers embrace online filing, they will find it is 
quicker and easier than manual filing, and it will reduce their 
administrative burden. NCUA will continue to help small credit unions 
transition to electronic filing and anticipates that OSCUI will 
continue to participate in this effort.
    Accordingly, the Board is adopting the July 2013 proposed rule as 
final without any changes. The final rule will be effective on January 
1, 2014, which means it is applicable to the fourth quarter 2013 call 
report data, which are due to NCUA later in January 2014.

III. Regulatory Procedures

A. Regulatory Flexibility Act

    The Regulatory Flexibility Act requires NCUA to prepare an analysis 
to describe any significant economic impact a regulation may have on a 
substantial number of small entities.\7\ For purposes of this analysis, 
NCUA considers small credit unions to be those having under $50 million 
in assets.\8\ This final rule requires a very small number of manual 
filers to transition to electronic filing. This final rule would affect 
relatively few FICUs and the associated cost is minimal. Accordingly, 
NCUA certifies this final rule will not have a significant economic 
impact on small entities.

    \7\ 5 U.S.C. 603(a).
    \8\ Interpretive Ruling and Policy Statement 03-2, 68 FR 31949 
(May 29, 2003), as amended by Interpretative Ruling and Policy 
Statement 13-1, 78 FR 4032 (Jan. 18, 2013).


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B. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in 
which an agency by rule creates a new paperwork burden on regulated 
entities or modifies an existing burden.\9\ For purposes of the PRA, a 
paperwork burden may take the form of either a reporting or a 
recordkeeping requirement, both referred to as information collections. 
This final rule requires the same information previously required in a 
different format, which NCUA believes will require the same or a lesser 
amount of time to produce. This final rule will not create new 
paperwork burdens or modify any existing paperwork burdens.\10\

    \9\ 44 U.S.C. 3507(d); 5 CFR part 1320.
    \10\ The information collection in Call Reports and Credit Union 
Profiles for natural person credit unions (NCUA Form 5300) is 
currently approved under OMB Control Number 3133-0004. For corporate 
credit unions (NCUA Form 5310), the information collection in Call 
Reports is pending under OMB Control Number 3133-0067.

C. Executive Order 13132

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their actions on state and local interests. In 
adherence to fundamental federalism principles, NCUA, an independent 
regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies 
with the executive order. This final rule will not have a substantial 
direct effect on the states, on the connection between the national 
government and the states, or on the distribution of power and 
responsibilities among the various levels of government. NCUA has 
determined this final rule does not constitute a policy that has 
federalism implications for purposes of the executive order.

D. Treasury and General Government Appropriations Act, 1999--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, Public Law 105-277, 112 
Stat. 2681 (1998).

E. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act of 1996 \11\ 
(SBREFA) provides generally for congressional review of agency rules. A 
reporting requirement is triggered in instances where NCUA issues a 
final rule as defined by Section 551 of the Administrative Procedure 
Act.\12\ NCUA does not believe this final rule is a ``major rule'' 
within the meaning of the relevant sections of SBREFA. This final rule 
requires a very small number of manual filers to file financial, 
statistical, and other reports electronically, which is minimally 
intrusive and economically negligible. NCUA has submitted the rule to 
the Office of Management and Budget for its determination in that 

    \11\ Public Law 104-121, 110 Stat. 857 (1996).
    \12\ 5 U.S.C. 551.

List of Subjects

12 CFR Part 741

    Credit, Credit unions, Reporting and recordkeeping requirements, 
Share insurance.

12 CFR Part 748

    Credit unions, Reporting and recordkeeping requirements, Security 

    By the National Credit Union Administration Board on October 24, 
Gerard Poliquin,
Secretary of the Board.

    For the reasons stated above, NCUA amends 12 CFR parts 741 and 748 
as follows:


1. The authority for part 741 continues to read as follows:

    Authority:  12 U.S.C. 1757, 1766(a), 1781-1790, and 1790d; 31 
U.S.C. 3717.

2. In Sec.  741.6, revise paragraph (a) introductory text to read as 

Sec.  741.6  Financial and statistical and other reports.

    (a) Upon written notice from the NCUA Board, Regional Director, 
Director of the Office of Examination and Insurance, or Director of the 
Office of National Examinations and Supervision, insured credit unions 
must file financial and other reports in accordance with the 
instructions in the notice. Insured credit unions must use NCUA's 
information management system, or other electronic means specified by 
NCUA, to submit their data online.
* * * * *


3. The authority for part 748 continues to read as follows:

    Authority:  12 U.S.C. 1766(a), 1786(q); 15 U.S.C. 6801-6809; 31 
U.S.C. 5311 and 5318.

4. In Sec.  748.1, revise paragraph (a) to read as follows:

Sec.  748.1  Filing of reports.

    (a) The president or managing official of each federally insured 
credit union must certify compliance with the requirements of this part 
in its Credit Union Profile annually through NCUA's online information 
management system.
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[FR Doc. 2013-25716 Filed 10-29-13; 8:45 am]