Interest rate swaps and caps promote safety and soundness by helping community-based institutions hedge interest rate risks related to fixed-rate mortgages and similar investments, the World Council of Credit Unions wrote Monday.
The World Council of Credit Unions supports the Financial Stability Board’s initiative to develop a “cyber lexicon” but urges the board to take a proportional approach that does not impose additional compliance burdens on credit unions.
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.