Newsroom
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.
Board briefing
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.
Share This
Related Resources
Add to Calendar 2024-04-23 14:00:00 2024-04-23 14:00:00 Monitoring the Latest Litigation Risks Credit unions’ operations pose litigation risks, with more of these cases being filed as class action lawsuits. In this Monitoring the Latest Litigation Risks for Credit Unions webinar, you’ll review some of the specific kinds of lawsuits impacting credit unions and what potential claims could be on the horizon. You’ll also examine some options for mitigating risks. Key Takeaways Review the current lawsuit trends. Understand the potential claims risks Explore options for mitigating risks. Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 23, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Monitoring the Latest Litigation Risks
Credits: NCCO, NCRM
Webinar
Resiliency In Your Incident Response Plan
Cybersecurity
preferred partner
DefenseStorm
Blog Post
The Bottom Line on Insurance Tracking and Collateral Protection
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-04-15 09:00:00 2024-04-15 09:00:00 Mergers and Acquisitions: Unifying Two Different Executive Total Compensation and Benefits Programs Listen On: Key Takeaways: [03:50] With the merger of a smaller credit union into a larger one you are really only dealing with integrating staff into the larger credit union. [05:53] When working with a merger of equals we start with a deep dive into the executive compensation and benefits of each organization. [09:09] If your current executive benefits provider doesn’t conduct regular plan evaluations, consider having a plan audit anyway. [13:46] Don’t overpay for these things if you don’t have to. When you have more options available that means the cost is more appropriate. [17:11] It is in a unified organization’s best interest to do tier timelines where we look at your top executives who are critical to the unified organization’s success today and then slowly add in the next levels. Web NAFCU digital@nafcu.org America/New_York public
Mergers and Acquisitions: Unifying Two Different Executive Total Compensation and Benefits Programs
preferred partner
Gallagher
Podcast
Get daily updates.
Subscribe to NAFCU today.