Limits on Loans to Other Credit Unions
Key claim: The NCUA is removing its regulations on approval and policies for credit union-to-credit union loans, while federal credit unions remain bound by statutory lending requirements.
Abstract
(Rule · National Credit Union Administration) The NCUA Board (Board) is issuing this rule to remove the regulations related to approval and policies on making loans to other credit unions. While this provision will no longer be codified in regulation, federal credit unions remain subject to statutory requirements related to making loans to credit unions. Federally insured, state-chartered credit unions remain subject to any other applicable NCUA or state law or regulation. The final rule follows publication of a December 29, 2025, proposed rule, and takes into consideration the public comments recieved on the proposal.
Why this matters
This deregulatory cleanup narrows NCUA’s regulatory footprint over inter-credit-union lending by removing prescriptive approval and policy requirements, shifting reliance to the underlying statutory limits in the Federal Credit Union Act. For federal credit unions, it reduces compliance overhead when lending to peer institutions, though the substantive statutory ceilings and safety-and-soundness expectations remain intact.