June 8, 2011 – The June 16 open NCUA Board meeting has been moved to June 17, NCUA said, and will begin at 10 a.m.
NCUA hasn’t posted its agenda for the June meeting, but it’s fair to expect the board will receive reports on the share insurance fund and the corporate stabilization fund – and possibly some reporting on responses so far to the agency’s proposed program for voluntary stabilization assessments (on which comments are due June 20). In addition, the agency currently has four proposed rules on its plate that have passed their public comment deadlines.
The comment periods ended May 31 and May 2, respectively, on the agency’s proposed rule on incentive-based compensation for executives and one removing references to credit ratings from the agency’s rules and regulations. Both were proposed under the Dodd-Frank Act. Comment periods also ended May 23 on the agency’s proposed rule redefining “net worth” and “equity ratio” and requiring the establishment of interest-rate risk policies.
NAFCU submitted comments on all four of the above proposed rules:
- Executive compensation: NCUA’s proposal would apply reporting and disclosures regarding compensation for certain executives at all credit unions with more than $10 billion in assets. NAFCU has questioned this since the same interagency rulemaking would only affect banks with more than $50 billion in assets.
- Credit ratings: The Dodd-Frank Act requires that agencies remove all references to credit ratings from their regulations. NAFCU has urged NCUA, as the leading agency in the Federal Financial Institutions Examination Council, to seek legislative action to repeal that provision. It said over-reliance on such ratings should not be a concern where the ratings are available on a subscription-only basis.
- Net worth and equity ratio: The NCUA proposal implements revisions to the Federal Credit Union Act clarifying that “equity ratio” for the share insurance fund is calculated based on that fund’s financial statements alone; and that 208 assistance provided to troubled credit unions can be included in the institutions’ net worth calculations. NAFCU said this should be clarified so it applies whether or not a merger is planned.
- Interest-rate risk: NCUA’s proposed rule would require about half of all federally insured credit unions to establish interest-rate risk policies and related risk management measures. NAFCU urged a longer implementation period than the 90-day period proposed. It also urged, among other things, that credit unions be able to base their policies on third-party models.
NCUA’s June 17 open board meeting agenda should be available by the end of the week. NAFCU’s regulatory comment letters are linked from the Regulation section of this website. (will link to main page there)