Fixed-assets flexibility, stabilization fund report on NCUA's menu today
ALEXANDRIA, Va. (3/19/15)--The National Credit Union Administration holds its March meeting this morning and is expected to consider putting a new fixed-assets proposal out for comment. The board also will receive an update on the Temporary Corporate Credit Union Stabilization Fund.
The updated fixed-assets proposal follows one the agency issued in July 2014. The earlier plan seeks to address the waiver process required of credit unions that exceed the 5%-of-shares-and-retained-earnings cap on such assets.
It would instead allow a credit union to exceed the cap, but require it to have an approved "fixed asset management" program in place. As proposed, the fixed-assets management program would be reviewed through the examination process.
NCUA Chair Debbie Matz has indicated that NCUA staff today will propose removal of the 5% limitation, a change CUNA has sought, including in a comment letter filed last year in response to the earlier fixed-assets proposal.
Specifically, that letter commended the plan's intent to provide some additional operational flexibility to federal credit unions but advocated that the NCUA has the authority to provide more leeway than the proposal indicates.