Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NCUA Derivatives Details Discussed In CUNA Audio Conference
WASHINGTON (6/6/13)--The National Credit Union Administration's recently released derivatives proposal was one of many topics discussed by Credit Union National Association staff during a "Pressing Regulatory and Compliance Issues Audio Conference" held last week.

CUNA is particularly interested in how the proposal would address the use of outside vendors and how fees collected by the agency would be spent. CUNA in recent meetings with the agency has also asked the NCUA how existing staffing levels would be adjusted to deal with derivatives supervision.

The NCUA derivatives proposal, released at the May open board meeting, would allow well-run federal credit unions to use simple derivatives to hedge against interest rate risks. The NCUA plan would allow only well-managed credit unions with $250 million or more in assets, and which have appropriate expertise, to apply for an agency derivatives investment program. Swaps and caps will be the only approved investments. Fees will be charged to cover costs related to application processing and supervision of the program.

Around 75 to 150 credit unions would apply for derivatives authority within the first two years of the program, the NCUA has estimated. The agency said it would need to add new resources to handle application processing and supervision if the program is approved.

CUNA staff during the conference said the NCUA kept the derivatives proposal simple to release it in a more timely fashion. The agency is particularly interested in credit union comments on fees and asset level cutoffs, CUNA staff said.

The audio conference also featured:
  • An update on U.S. Congress tax discussions;
  • The latest on Consumer Financial Protection Bureau regulatory actions; and
  • Discussion of other key legislative and regulatory topics.
An archived version of the conference will be released later this week.
Other Resources

Archived Audio Conference
RSS print
News Now LiveWire
St. Louis treasurer taps #creditunion to serve unbanked #NewsNow http://t.co/lWtcezJOej
7 hours ago
.@CUNAMutualGroup has committed $35K to @trustdotcoop over the next year to suppor the future of #creditunions.
8 hours ago
.@madison_mag gets the cooperative scoop from @SummitDoMore's @kimsponem http://t.co/RxSCeSegie
8 hours ago
.@VantageWestCU emeritus chairman Whittaker inducted into @DCUC_HQ Hall of Fame http://t.co/dpeP4ME49U
10 hours ago
Australian newspaper covers Gen Y tips from @ServusCU at @WOCCU conference http://t.co/xqmLfZVwaI
10 hours ago