Corporate restructure plan may be out this fall
WASHINGTON (6/9/09)—The National Credit Union Administration (NCUA) is expecting to issue by this fall a proposal addressing changes to the corporate credit union system, according to the agency chairman, Michael Fryzel.
Earlier this year, the NCUA received about 450 comments on its advance notice of proposed rulemaking (ANPR) regarding the corporate credit union system and its regulation.
The NCUA encouraged credit union comment as the agency began evaluating the corporates' role in the credit union system--including their membership, structure, size and services.
Also under consideration is whether to amend Part 704, the corporate credit union regulation, to clarify or revise provisions that include capital, permissible investments, management of credit risk and liquidity, and corporate governance.
Fryzel said last week that if the agency issues proposed rules for comment in the fall, it could hopefully approve final rules by early spring, the New Jersey Credit Union League reported. Fryzel spoke to and visited more than 70 credit union leaders in that state, the league said.
Some NCUA senior staff have indicated that the process to a final rule may be completed even earlier than the spring.
Fryzel said that other issues affecting credit unions, such as supplemental capital, risk-based capital and the member business lending cap, are currently on the back burner of the agency's priorities until the chairman sees the corporate situation improving, the league reported.
Likely before the agency produces a proposal on corporate credit union structure, the leadership of the agency may change. President Barack Obama has nominated former NCUA member Deborah Matz to fill a vacancy that will be created by the departure of Vice Chairman Rodney Hood, with the intention of naming Matz chairman.
The Senate Banking Committee has not yet set a date for Matz's nomination hearing.
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