Friday, February 18, 2011 12:18:00 PM
At the Feb. 17th meeting, the NCUA Board (Board) issued a proposed inter-agency rule on certain incentive-based compensation arrangements required under the Dodd-Frank Act. The proposal addresses bonuses and/or other incentives that are provided to directors or certain employees in connection with an activity, such as an investment, that subject the credit union to undue risk. In addition, the proposal would apply heightened restrictions on incentive-based compensation to credit unions with more than $10 billion in assets that are the same as the restrictions that would apply to banks with more than $50 billion in assets.
An extension of the 18% interest-rate ceiling for federal credit union loans was also approved by the Board. The Board proposed a rule to replace credit ratings, such as "AA", used in NCUA's regulations with terms like "very strong capacity to meet its financial commitments"; and approved a final Interpretive Ruling and Policy Statement on corporate federal credit union chartering.
NCUA staff also updated the Board on the National Credit Union Share Insurance Fund (NCUSIF) and the Temporary Corporate Credit Union (TCCU) Stabilization Fund. See today's Weekly Exchange for more details and access to CUNA's summary of the meeting.
Also, the New Jersey Credit Union League is now providing member credit unions with a summary of NCUA Board Meetings as soon as it becomes available.
To access the summary of yesterday's meeting, please visit http://www.njcul.org/ncua-board-meeting-summaries.aspx. You must be logged in to use this feature. If you do not have a login and password for the NJCUL Web site, please e-mail Candice Nigro at firstname.lastname@example.org to request credentials.