Federal Register #2026-12856

NCUA Final Rule: Prohibition on the Use of Reputation Risk in Supervision

The National Credit Union Administration (NCUA) has issued a final rule regarding its supervisory practices for credit unions. - The rule codifies the prohibition on using reputation risk in supervisory determinations or other agency decisions - No Original Equipment Manufacturers (OEMs) or vendors are involved, as this is a regulatory action - The NCUA is barred from requiring, instructing, or encouraging credit unions to alter business relationships based on reputation risk or the political, social, cultural, or religious views of individuals or entities - The rule aligns with Executive Order 14331, "Guaranteeing Fair Banking for All Americans" - Applies to all federally insured credit unions and their institution-affiliated parties - No products, services, part numbers, or purchase quantities are requested - The rule is intended to promote fairness and objectivity in credit union supervision

Description

This final rule issued by the National Credit Union Administration (NCUA) codifies the elimination of reputation risk from its supervisory framework, effective July 27, 2026. The rule affirms that the NCUA will not consider reputation risk in supervisory determinations or take adverse actions based on it. It prohibits the agency from requiring or encouraging credit unions to modify business relationships based on reputation risk or political, social, cultural, or religious views. The rule aligns with Executive Order 14331, "Guaranteeing Fair Banking for All Americans," and aims to promote fairness and objectivity in supervision.

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