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NCUA's board is poised to approve a final rule today that would eliminate the 5 percent cap on federal credit union investments in fixed assets, moving the agency's focus on this area from regulation to the supervisory process.

NAFCU has long urged the agency to remove this arbitrary limit on credit unions' ability to determine sound levels of investments in fixed assets, which include investments in real property, furniture, fixtures and equipment. The cap currently applies to federal credit unions with $1 million or more in assets. The agency's March proposal is revised from one issued last summer, which would have created a new board-policy requirement and used waivers.

NAFCU supported the new proposal but urged that NCUA also issue guidance showing what criteria examiners would use to review the safety and soundness of this activity. It also pressed for elimination of the rule's partial-occupancy requirements.

Today's board meeting begins at 10 a.m. and also includes a quarterly report on the National Credit Union Share Insurance Fund; report on the NCUA Guaranteed Notes program and Temporary Corporate Credit Union Stabilization Fund assessment determination; and a final rule on capital planning and stress testing schedules (affecting credit unions with $10 billion or more in assets). NCUA has long maintained that future stabilization assessments are unlikely

NAFCU wrote NCUA on the midyear budget reprogramming urging added transparency and a return to yearly budget hearings. NCUA Chief Financial Officer Rendell Jones responded Wednesday, noting that during midsession review, all budget activities are evaluated to ensure the agency's resources "are allocated efficiently and priority needs continued to be adequately resourced."

NCUA's budget will be discussed further during a 2 p.m. hearing today by the House Financial Services Subcommittee on Financial Institutions and Consumer Credit. NCUA Chairman Debbie Matz is slated to testify.