NCUA Board talks liquidity rule today
Oct. 23, 2013 – NAFCU will be watching the NCUA Board’s action on a final rule slated today on liquidity and contingency plans as well as a proposal addressing credit union capital planning and stress testing.
NAFCU opposed NCUA’s proposal on liquidity, which would require credit unions with more than $100 million in assets to have access to the federal discount window or membership in the Central Liquidity Facility. NAFCU holds that membership in a Federal Home Loan Bank should also satisfy the rule's requirement for access to emergency liquidity. NAFCU has also urged delayed implementation if the rule is finalized.
The NCUA Board is set to meet in open session today at 10 a.m. Eastern. In addition to the above, the agenda includes:
- a quarterly report on the NCUSIF, which was at 1.27 percent of insured shares in June;
- joint diversity standards for regulated entities;
- final rules for electronic filing of financial reports and liquidity and contingency funding plans; and
- a briefing on an interagency proposed rule on loans in flood hazard areas.
The stress testing proposal, as described last month by NCUA Chairman Debbie Matz, is expected to focus on credit unions with more than $10 billion in assets.