Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Corp CU investment tech changes voted by NCUA
ALEXANDRIA, Va. (3/18/11)--Definitions of the National Credit Union Share Insurance Fund’s (NCUSIF) “equity ratio” and credit union “net worth,” as found in the Federal Credit Union Act, would be revised by National Credit Union Administration (NCUA) actions proposed on Thursday. The equity ratio changes aim to clarify that the NCUSIF’s equity ratio must be based solely on the financial statements of the NCUSIF alone without consolidation with other statements, such as those of conserved credit unions. Under the net worth changes, credit unions will be permitted to count special section 208 assistance provided by the NCUSIF as part of their net worth ratio. The new net worth standards will apply to loans and accounts with remaining maturities of more than five years. These loans and accounts must be subordinate to all other claims, including those of shareholders, creditors, and the NCUSIF. They must not be pledged as a security on a loan to, or other obligation of, any party, and may not be insured by the NCUSIF. The agency also approved the final version of a rule that assigns a zero risk-weighting to the NCUA Guaranteed Notes (NGNs) for risk-based net worth requirements under PCA for complex credit unions purchasing the notes. The Credit Union National Association supported the NCUA’s implementation, and has noted that credit unions that invest in these notes will have no increased risk-based prompt corrective action requirements since they will be entered as a zero in the risk-based net worth equation. Corporate credit unions will also be able to invest in NGNs after the board approved a final rule that corrects the definition of “collateralized debt obligation.” This final rule also corrects the existing list of investments exempt from the single obligor limits and credit rating requirements.


RSS





print
News Now LiveWire
Construction spending drops in January, according to @CommerceGov http://t.co/W9J1mDyF8X #Market #NewsNow
11 hours ago
During Nat'l Consumer Protection Week, @TheNCUA reminds #CU members of agency resources re: rights as consumers. http://t.co/aYgW1HoDmF
12 hours ago
.@TransUnion: #millennials climbing into driver's seat with loans http://t.co/S4H9OIB3Av
13 hours ago
Breaking at #NewsNow: @CUNA backed bill introduced by @RepEdRoyce @GregoryMeeks would raise MBL cap. #CUSmallBiz http://t.co/ZDAb2UMoQz
14 hours ago
Loan growth at federally insured #creditunions in 2014 climbed to highest level since 2005, @TheNCUA reported today. Watch News Now Tues.
15 hours ago