Today, 8 April 2020, The PRA has issued a letter modifying the minimum provisioning requirements on Credit Union loan debts in order to reduce some of the pressure credit unions are experiencing as a result of CV19 .
This rule change is said to apply until 31 December 2020.
To go to the letter, click here. Read it carefully, for example if you want to take up the option of this modification, you have to email the PRA to tell them so, don’t just take it.
The PRA went on in their letter to remind readers that where a credit union is either already below its capital requirement or projects to be so, it should notify the PRA immediately as required by the Credit Union Rulebook Part 8.6. In other words, the duties on the directors of credit unions and the level of regulatory supervision will remain largely unchanged notwithstanding this quite mammoth crisis.
If you’re involved in a credit union and feel you need insolvency support, call Paul on 07813 102014.