Removing Barriers Blog

January 2017 NCUA Board Meeting Summary
Posted January 23, 2017 by CUNA Advocacy

The NCUA approved an Advanced Notice of Public Rulemaking (ANPR), Parts 701-703, 741 and 745, Alternative Capital, and received a Board Briefing on Part 747, Statutory Inflation Adjustment of Civil Money Penalties.

  • Advanced Notice of Public Rulemaking, Parts 701-703, 741 and 745, Alternative Capital
    The Board approved the publication of an ANPR to solicit comments on alternative forms of capital federally insured credit union can use in meeting capital standards required by statute and regulation.  The ANPR includes secondary capital and supplemental capital.  Secondary capital is permissible for low-income designated credit unions and can be counted toward both the new worth ratio and the risk-based net worth requirement under NCUA's prompt corrective action standards. The Board is contemplating authorizing supplemental capital instruments that would only count towards the risk-based net worth requirement.

The Board is seeking comments on the following six questions:

  1.  Should additional supplemental forms of capital be included in the RBC numerator and how would including such capital protect the Share Insurance Fund from losses?
  2. If yes, to be included in the RBC numerator, what specific criteria should such additional forms of capital reasonably be required to meet to be consistent with GAAP and the Act, and why?
  3. If certain forms of certificates of indebtedness were included in the risk based capital ratio numerator, what specific criteria should such certificates reasonably be required to meet to be consistent with GAAP and the Act, and why?
  4. In addition to amending NCUA's RBC regulations, what additional changes to NCUA's regulations would be required to count additional supplemental forms of capital in NCUA's RBC ratio numerator?
  5. For state-chartered credit unions, what specific examples of supplemental capital currently allowed under state law do commenters believe should be included in the RBC ratio numerator, and shy should they be included?
  6. What investor suitability, consumer protection, and disclosure requirements should be put in place related to additional forms of supplemental capital?

Comments will be due 90 days after publication in the Federal Register.

  • Board Briefing, Part 747, Statutory Inflation Adjustment of Civil Money Penalties
    The Board received a briefing on the Interim Final rule amending the regulations to adjust the maximum amount of each civil monetary penalty under its jurisdiction for inflation.  The action is required under federal law.  The agency is not required to provide for comment on the rule, but nonetheless has chosen to do so.