Two proposed rules – on risk-based capital, and on clarifying existing rules for loans to members – and a final rule on suspension and debarment procedures for agency contractors will be considered by the federal regulator of credit unions when its board meets next week.
A “mid-session 2018” budget review, and continuation of the federal credit union lending interest rate ceiling, will also be under consideration during the meeting of the National Credit Union Administration (NCUA) Board Thursday (Aug. 2).
UPDATED: Regarding risk-based capital, the agency offered no additional details. However, reports circulated Friday that — in a letter to two members of the House Financial Services Committee — NCUA Board Chairman J. Mark McWatters indicated that the proposal would delay the effective date of the regulation by one year, to Jan. 1, 2020. The letter was reportedly addressed to Reps. Bill Posey (R-Fla.) and Denny Heck (D-Wash.).
McWatters also reportedly indicated that the proposal would change the definition of a complex credit union from $100 million to $500 million, and that the proposal would be issued for a 30-day comment period.
With regard to the loans to members proposal, the unified agenda notes that the agency is proposing clarifications to its regulation governing loans and lines of credit to members (under section 701.21 of the agency’s rules).
In other action, the NCUA Board plans to:
- Consider a final rule on suspension and debarment procedures for contractors doing business with the agency. Proposed in March, the final rule would set out an administrative process for suspending and debarring contractors that do not meet threshold criteria designed to protect the government’s interest in avoiding waste, fraud, abuse and poor performance, according to NCUA. The rule would also seek public comment on the process.
- Consider whether to continue the loan interest rate ceiling for most loans made by federal credit unions, which the board is required to do under the law every 18 months. The rate is now set at 18% (set in February 2017). The board must either affirm that rate or set a new one by Sept. 10.
- Hear an update of the agency’s spending performance under the current budget as of mid-year.
The board meeting gets underway at 10 a.m. ET Thursday at NCUA headquarters in Alexandria, Va.