The World Council of Credit Unions generally supports the Financial Stability Board’s proposal on ways to improve stability of too-big-to-fail banks, but urged the board to make several changes in the final version.
The World Council of Credit Unions opposes making demutualizations--making member-owned entities into shareholder-owned entities-- the international standard for resolving weak financial cooperatives, it wrote last week to the International Association of Deposit Insurers.
The World Council of Credit Unions wrote to the Basel Committee suggesting changes to its proposal on market risk capital requirements, the first proposed as expressly applicable to institutions like credit unions in the U.S.
Authorizing credit unions to issue capital shares is fully consistent with congressional intent, credit union history, credit unions’ tax status and credit unions’ mutual structure, the World Council of Credit Unions wrote to NCUA Tuesday, in response to its ANPR.
The World Council of Credit Unions filed a comment letter with the Financial Action Task Force last week, focusing on correspondent banking, information sharing and customer due diligence requirements for the underbanked.
The World Council of Credit Unions asked the Financial Action Task Force this week for clearer guidance on AML/CFT rules in order to reduce regulatory burdens. The FATF is the global standard setting body for AML/CFT rules.
Recent guidance from the Financial Action Task Force will likely make it easier for credit unions to establish and maintain correspondent banking relationships. The Financial Crimes Enforcement Network will likely issue guidance based on the FATF standard.