Fixed-asset ownership, stabilization fund report are focus of next NCUA open meeting
ALEXANDRIA, Va. (3/13/15)--A reissued proposed rule on fixed assets tops the agenda for the National Credit Union Administration's March 19 board meeting. NCUA Chair Debbie Matz indicated to the nearly 5,000 credit union leaders at CUNA's Governmental Affairs Conference (GAC) Monday that the board would be issuing a fixed assets rule soon.
The agency is expected to allow a 30 to 60 day comment period.
Matz said in her GAC address that she favors eliminating the 5% cap on fixed assets. Under that approach, she said, "(t)he new proposal will authorize federal credit unions to set their own prudent limits on fixed assets such as computers and buildings."
Matz added that, while an over-concentration in fixed assets can be dangerous, she believes credit unions should be able to "prudently and deliberately" make those decisions without "needless red tape" from the NCUA.
Fixed assets was just one of the five points that Matz said in her address would make up "the year of regulatory relief" in 2015. The other areas of regulatory relief she said the agency will highlight are: permitting asset securitization, easing member business lending, altering fields of membership and courting supplemental capital.
The upcoming proposal will likely build on an earlier proposed rule about fixed assets that would eliminate the 5% cap. CUNA urged the agency go to farther in providing flexibility to federal credit unions.
The March 19 meeting agenda will also feature a quarterly report on the Temporary Corporate Credit Union Stabilization Fund.
Video of the meeting will be streamed live online, and registration is open for those wishing to view it.