WASHINGTON (6/6/13)--The National Credit Union Administration continues to collect comments on its recently released derivatives proposal, and the Credit Union National Association is particularly interested in how the proposal would address the use of outside vendors and how fees collected by the agency would be spent.
CUNA in recent meetings with the agency has also asked the NCUA how existing staffing levels would be adjusted to deal with derivatives supervision, CUNA Assistant General Counsel Lance Noggle said during a Wednesday "Pressing Regulatory and Compliance Issues Audio Conference."
The NCUA derivatives proposal, released at the May open board meeting, would allow well-run federal credit unions to use simple derivatives to hedge against interest rate risks. The NCUA plan would allow only well-managed credit unions with $250 million or more in assets, and which have appropriate expertise, to apply for an agency derivatives investment program. Swaps and caps will be the only approved investments. Fees will be charged to cover costs related to application processing and supervision of the program.
Around 75 to 150 credit unions would apply for derivatives authority within the first two years of the program, the NCUA has estimated. The agency said it would need to add new resources to handle application processing and supervision if the program is approved.
Noggle during the CUNA call said the NCUA kept the derivatives proposal simple to release it in a more timely fashion. The agency is particularly interested in credit union comments on fees and asset level cutoffs, he said.
The audio conference also featured:
An archived version of the conference will be released later this week.