NCUA finalizes corporate CU rule, proposes changes to derivatives rule, more
The NCUA Board Thursday approved a final rule updating its corporate credit union rules and a proposed rule to amend the agency’s derivatives rule in subpart B to part 703 of its regulations. Of note, the board voted to remove the fourth item – a request for information on the agency’s supervisory guidance and communication improvements – from the meeting agenda.
In light of National Cybersecurity Awareness Month, the board was briefed on coronavirus-related cyber-attacks, including phishing, ransomware, and other means, that seek to exploit inadequacies in cyber hygiene policies and procedures. The board went on to reiterate its strong support for legislative authority to allow the NCUA to examine third-party vendors following pandemic recovery.
NAFCU has historically opposed granting the NCUA third-party vendor authority.
Final rule, corporate credit unions
The board approved the NAFCU-supported final rule updating its corporate credit union rules to permit a corporate credit union to make a minimal investment in a CUSO without the CUSO being classified as a corporate CUSO. In addition, the rule expands the categories of senior staff that may serve on a corporate credit union board and amends the requirements for a corporate credit union’s enterprise risk management expert.
NAFCU submitted a comment letter to the agency earlier this year following the board's proposal at its February meeting and offered support for the agency’s effort to provide greater flexibility and ease regulatory burden.
Proposed rule, derivatives
On derivatives, the board approved a proposed rule to adopt a more principles-based approach to provide credit unions with more flexibility to manage their interest rate risk through the use and purchase of derivatives. In addition, the proposal would:
- eliminate the preapproval process for federal credit unions (FCUs) that are complex and have a CAMEL rating of 1 or 2;
- eliminate the specific product permissibility; and
- eliminate the regulatory limits on the amount of derivatives an FCU may purchase.
In 2014, the NCUA Board issued a final rule to allow federal credit unions the ability to apply to use derivatives in an effort to reduce interest rate risk.
NAFCU will continue to stay in close contact with the NCUA and continue to provide industry updates to credit unions via NAFCU Today; the board will next meet Nov. 19.
Add to Calendar 2020-10-22 14:00:00 2020-10-22 14:00:00 Navigating Mergers and Acquisitions During these uncertain times, credit union mergers are a hard reality to face. We strive to strengthen credit unions with as much support as possible to maintain steady growth and success. While NAFCU does not encourage credit unions to merge, we realize mergers are a part of our industry’s reality. Please join us for a discussion on must-know concepts regarding mergers and other similar transactions, including bank and credit union branch acquisitions. This “101” presentation will focus on key concepts that will let you focus on the opportunities that will work for you, and the strategies that will bring you success. Again, NAFCU does not encourage mergers, but if you are considering one, we want you to be armed with helpful information. Key Takeaways Understand how to identify early whether merger or purchase/sale opportunities will bring material benefits Discuss strategic questions to ask your credit union whether merger is right for you (or how to stay independent) Review how to navigate major un-written rules in the application process Gain knowledge about member votes and communications Purchase Now$295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire credit union access to the on-demand recording until October 22, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? Chief Executive Officers (CEOs) Executive Vice Presidents (EVPs) Chief Financial Officers (CFOs) Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Understand how to identify early whether merger or purchase/sale opportunities will bring material benefits. Discuss strategic questions to ask your credit union whether merger is right for you (or how to stay independent). Review how to navigate major un-written rules in the application process. Gain knowledge about member votes and communications. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Finance – Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
Credits: NCCO, NCRM, CPE
Add to Calendar 2020-10-22 14:00:00 2020-10-22 14:00:00 [INTERVIEW] CU Blueprint for Secure Cloud-First Strategies About the Interview “Moving to the Cloud” can seem like an ambiguous, one-time, heavy-lift project, often leading to misunderstanding and analysis paralysis within credit unions. For your CU to stay competitive, you want to deliver a seamless digital experience that's more than flashy applications. It needs to be built on flexible, secure infrastructure that allows innovation. Join us for this panel discussion and learn practical, proven processes to establish and evolve secure, cloud-first strategies. Hear best practices in communication, talent, and technology, and walk away with a blueprint for your secure credit union transformation. Watch the Interview On-Demand Web NAFCU firstname.lastname@example.org America/New_York public
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