Newsroom

The NCUA Board will finalize its NAFCU-supported proposal that essentially expands the authority of federal credit unions to invest in bank notes during its open meeting March 24, according to the agenda released Thursday.

The NCUA Board will also receive a Temporary Corporate Credit Union Stabilization Fund update and discuss a program that would integrate management of the agency's credit union-facing websites and technology.

The current investments regulation limits federal credit unions to investing in bank notes "with original weighted average maturities of less than five years." The proposal removes the word "original" from the text of the regulation, thereby allowing federal credit unions to purchase bank notes that had original maturities of greater than five years but still have remaining maturities of less than five years.

In a November comment letter on the proposal, NAFCU Regulatory Affairs Counsel Alexander Monterrubio said credit unions have found that the "original" requirement attached to the "weighted average maturity" limitation to be overly restrictive to their investment opportunities and welcomed the change.