Newsroom

March 11, 2011 – Next week's NCUA Board meeting will address a proposed rule on interest-rate risk at credit unions and final rules containing technical revisions to the agency's corporate credit union regulation and on the definition of low-risk assets.

The first itemwould revise Part 741 of NCUA's rules and regulations to require credit unions to establish an interest-rate risk policy. The corporate rule technical amendments would provide an exception from the general ban on corporate credit union investments in collateralized debt obligations.

The final rule on low-risk assets would finalize an interim rule that defines as low-risk credit union investments in NCUA Guaranteed Notes, which are funded from corporates' legacy assets.

Also slated is a proposed rule on NCUA rule definitions of net worth and equity ratio. This is expected to implement revisions made late last year to the Federal Credit Union Act. The change in the definition of net worth would enableNCUA to provide Section 208 capital assistance to a troubled credit union that the agency has targeted for an assisted merger. The act was also revised to clarify the definition of equity ratio for the National Credit Union Share Insurance Fund.

The board is also poised to address delegations of authority and hear a report on the NCUSIF. A closed meeting follows.