The NCUA board finalized its corporate credit union rule and proposed a new rule on derivatives at its Thursday meeting. Detailed coverage of the meeting can be found on CUNA’s Removing Barriers Blog.
The corporate credit union final rule amends updates, clarifies, and simplifies several provisions of the corporate credit union regulation.
CUNA filed a comment letter largely in support of the rule, which will become effective 30 days after it is published in the Federal Register
The derivatives proposal is intended to modernize the derivatives rule and make it more principles based. It would retain key safety and soundness components, while providing more flexibility for federal credit unions to manage their interest rate risk through the use of derivatives.
The proposed changes are intended to streamline the regulation and expand credit unions’ authority to purchase and use derivatives for the purpose of managing interest rate risk, according to NCUA.
Comments will be accepted for 60 days following publication in the Federal Register.
The cybersecurity briefing included considerations for boards during the COVID-19 pandemic and included information on phishing, malspam, credential stuffing, ransomware, Remote Desktop Protocol targeting and unintentional DDoS attacks.
NCUA Chairman Rodney Hood reiterated his call for Congress to provide the NCUA with vendor authority to allow the agency to better supervise third-party cyber security risk after the briefing. Hood said he believes this should be provided for post-pandemic recovery and board members Todd Harper and J. Mark McWatters agreed.
Cyber Liability and Intelligence, a member benefit recorded webinar