Prohibition on the Use of Reputation Risk

The National Credit Union Administration (NCUA) has proposed a rule that eliminates the consideration of reputation risk in its supervisory framework for credit unions. This change, effective June 25, 2026, means the NCUA will not factor in reputation risk when making decisions or taking actions against credit unions.

By removing reputation risk from evaluations, credit unions can operate more freely without the fear of negative impacts from reputation concerns. This change could lead to a more stable environment for credit unions as they focus on their core functions.