Oct. 18, 2012 – The NCUA Board will meet today to discuss a number of issues, including a proposed rule on the acceptance deadline for low-income designation, a charter conversion request and a quarterly report on the National Credit Union Share Insurance Fund.
Since NCUA notified 1,003 credit unions in August of their eligibility for the low-income designation, over half have told the agency they want it. NCUA has said it is looking at eligibility for this designation each quarter and will notify credit unions if they meet the requirements. Current NCUA rules note that credit unions should tell the agency if they want the designation within 30 days of being notified of their eligibility.
NAFCU continues to remind members that the designation brings with it a number of regulatory benefits, including: an exemption from member business lending limits; eligibility for Community Development Revolving Loan Fund grants and low-interest loans; the ability to accept non-member deposits; and authorization to obtain supplemental capital.
The charter request that the NCUA Board will consider comes from the Dublin, Ohio-based BMI FCU, which is seeking approval to switch to a community charter.
One item conspicuously absent from the meeting agenda is final action on NCUA’s proposed rule on emergency liquidity. The proposal, which would establish different emergency liquidity requirements for credit unions depending on their asset size, is of great concern to NAFCU because it would create heightened balance-sheet risk for credit unions. NAFCU has recommended that NCUA refrain from issuing a final rule so it can learn more about what credit unions are already doing to manage their liquidity needs.
The open meeting will be held at 10 a.m. at the agency's headquarters in Alexandria, Va. It will be followed by a closed session that will examine a charter and purchase and assumption request as well as a consideration of supervisory activities.