Monday, June 20, 2011 12:12:00 PM
ALEXANDRIA, Va. - The NCUA Board met Friday for the agency's monthly board meeting. Perhaps the most important aspect of the meeting was a question posed by NCUA Board Member Gigi Hyland, who questioned whether the National Credit Union Share Insurance Fund (NCUSIF) is over-reserved. The NCUSIF reserves currently stand at $1.2 billion. The NCUA's Office of Examination and Insurance is currently analyzing the NCUSIF's reserve levels, and will complete that analysis by the end of June.
The agency also announced its consideration of broadening rules that allow certain credit unions to hedge interest rates by investing in some forms of derivatives. The NCUA will accept comment on its advanced notice of proposed rulemaking for 60 days after it is published in the Federal Register.
Currently, NCUA allows a limited number of FCUs, on a case-by-case basis, to engage in derivative transactions through an investment pilot program. The program allows some investment activities that would otherwise be prohibited by Part 703, primarily through three third-party entities. The recently issued "golden parachute" prohibition was also addressed during the meeting, with the NCUA issuing a technical change that specifies that 457(b) tax free deferred compensation plans, but not other types of 457 plans, are among employee payment options that are protected from regulator scrutiny.
The NCUA also made final rules that will permit federal credit unions to use "statistically valid" random samples of member income data to prove their low-income status to the agency.
To access CUNA's full summary of Thursday's meeting, click here.
The summaries available to NJCUL member credit unions only. A password is required to access this information. To request a password, please contact Marissa Anema at firstname.lastname@example.org.