NCUA Proposes Rules that are Potentially Beneficial for CUs, Summary of Board Meeting Available on League Web Site

Posted by Marissa Anema Friday, September 21, 2012 11:11:00 AM


ALEXANDRIA, Va. – The NCUA, at its monthly board meeting Thursday, announced  several proposed rules that are potentially positive for credit unions regarding Treasury Inflation Protected Securities (TIPS), regulatory relief for small credit unions, the definition of “rural district” for field of membership, and an Advanced Notice of Proposed Rulemaking on payday-alternative loans. NCUA believes that TIPS will provide an additional investment portfolio risk management tool.

The Board approved for a 60-day comment period a proposed rule to allow federal credit unions to purchase Treasury Inflation Protected Securities (TIPS), as a permissible investment.

Also, the Board approved for a 30-day comment period a proposed rule and proposed Interpretive Ruling and Policy Statement (IRPS) 12-2 to amend NCUA’s definition of a “small entity” from the current asset threshold of $10 million to $30 million. The proposed broader definition of a “small entity” will provide additional regulatory compliance relief for small credit unions in current and future regulations, such as risk-based net worth requirements and the interest rate risk final rule that is effective September 30, 2012.

The Board approved for a 60-day comment period a proposed rule to amend the definition of a “rural district” in NCUA’s Chartering and Field of Membership Manual. The proposed rule would amend the definition of a “rural district” if, among other criteria, the area has a total area that does not exceed the greater of 200,000 people or three percent of the population in which the majority of the district is located.

Finally, the Board approved for a 60-day comment period an advance notice of proposed rulemaking (ANPR) to improve the Payday-Alternative Loan (PAL) rule, formerly known as short-term, small amount loans. The Board is seeking to encourage more federal credit unions to offer PAL loans through this process.

A complete summary of NCUA’s board meeting is available for download on the League Web site at

This aspect of the NJCUL Web site is limited to members only and is password protected. To request a login, visit


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