Sponsors (23)
The bill increases oversight and governance consistency for federally chartered credit unions by tying board meeting frequency to supervisory ratings—providing relief for well-rated institutions but imposing recurring time and cost burdens on weaker or small credit unions and risking perverse incentives to game ratings.
Newly chartered and lower-rated federally chartered credit unions will be required to meet more frequently (monthly for new charters/for rated 3–5), increasing oversight and reducing risks of mismanagement while promoting more consistent governance and regulatory compliance across federally chartered credit unions.
Credit unions with top supervisory ratings may reduce board meeting frequency to six times a year, lowering administrative burden and meeting costs for volunteer directors.
Credit unions rated 3–5 must meet monthly, increasing time and administrative costs for those institutions.
More frequent meetings could strain volunteer boards at small or rural credit unions, potentially diverting limited time and resources away from member services and community outreach.
Linking meeting frequency to supervisory ratings may create incentives to influence or game ratings, encouraging prioritization of rating improvement over long-term, member-focused governance decisions.
Based on analysis of 2 sections of legislative text.
Replaces a uniform monthly board-meeting rule for federal credit unions with a tiered schedule tied to charter age and regulator performance ratings.
Changes federal credit union board meeting rules from a one-size-fits-all monthly requirement to a tiered schedule that depends on how new a credit union is and on its regulator performance ratings. New (de novo) federally chartered credit unions must meet at least monthly for their first five years; top-rated credit unions (ratings 1 or 2) need only meet at least six times a year with at least one meeting each fiscal quarter; credit unions with lower ratings (3, 4, or 5) must continue meeting at least once a month. The bill does not create new spending or programs. It uses existing regulator ratings to set governance expectations aimed at aligning oversight intensity with demonstrated management capacity and financial condition.
Introduced February 4, 2025 by Juan Vargas · Last progress February 11, 2025