Credit unions can lend to each other without asking for permission first

The US credit union regulator is removing rules that required federal credit unions to get approval before lending money to other credit unions. This means federal credit unions will have more flexibility to support each other without bureaucratic delays.

For decades, federal credit unions needed explicit approval from their regulator to lend money to other credit unions. This created a bottleneck, especially when smaller credit unions needed quick access to funds. The change means they can now act faster to support each other, which could help stabilize smaller institutions during times of stress.