A proposed merger of the federal credit union savings insurance fund with a fund set up to stabilize “corporate” credit unions in the wake of the financial crisis – which could result in between $600 million and $800 million being distributed to credit unions in early 2018 — will be considered by the NCUA Board during its open meeting Thursday (Sept. 28) in Alexandria, Va.
In addition to resulting in the likely distribution of excess funds, the rule, as proposed, would also raise the insurance fund’s equity ratio above the current “normal operating level” of 1.33% to a proposed 1.39%.
Both provisions of the proposal have raised considerable interest within the credit union industry: more than 600 comment letters had been filed by credit unions, industry trade groups, other organizations and individuals at the end of the Sept. 5 comment period.
Also on the agenda for the Sept. 28 credit union regulators’ meeting:
- A proposed rule on accuracy of advertising and notice of insured status by federally insured credit unions;
- A quarterly report on the condition of the “corporate” fund;
- A review of the agency’s 2018-22 strategic plan.
Also ahead in the week to come:
- Monday (Sept. 25): Responses are due to a Federal Reserve, OCC and FDIC comment request about extending the current treatment under the regulatory capital rules (capital rules) for certain regulatory capital deductions and risk weights and certain minority interest requirements, as they apply to banking organizations that are not subject to the advanced approaches capital rules (non-advanced approaches banking organizations).
- Thursday (Sept. 28): The CFPB’s Community Bank Advisory Council meets in Washington to discuss Know Before You Owe: Overdraft and financial empowerment initiatives.
- Friday (Sept. 29): Comments are due to NCUA on its proposal to amend in its Chartering and Field of Membership Manual the definition of the term “in danger of insolvency” for emergency merger purposes.
- Friday (Sept. 29): Responses are due to an OCC, Federal Reserve and FDIC request for comment on a proposed rule to amend the agencies’ regulations requiring appraisals of real estate for certain transactions.