Risk-based capital, derivatives slated Jan. 23

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Jan. 17, 2014 – NCUA’s board is poised to issue a proposed rule to implement risk-based capital requirements for credit unions during its Jan. 23 open meeting.

NCUA Chairman Debbie Matz announced plans to issue its proposal during NAFCU’s 2013 Annual Conference in Boston. At the conference, she said the agency would focus the proposal on credit unions with more than $50 million in assets.

NAFCU strongly supports implementing risk-based capital for credit unions, but it believes legislative changes are needed to appropriately implement a risk-based capital system for credit unions. NAFCU has raised concerns with the necessity of agency action.

The board is also slated to act next week on a final rule addressing credit union investments in certain types of derivatives to mitigate interest-rate risk. NAFCU has long sought such authority and strongly supports NCUA’s action. However, it has expressed strong opposition to the notion of assessing fees on credit unions that seek to exercise that authority. The association is also opposed to limiting this authority to only credit unions with more than $250 million in assets.

Next week’s open meeting agenda also includes action on the federal credit union interest-rate ceiling and the agency’s strategic and annual plans.

Related Links:
Jan. 23 NCUA Board agenda
NAFCU editorial in CU Times