ALEXANDRIA, Va.–NCUA has rescheduled its open and closed board meetings, both originally set for July 16.
Both meetings are now scheduled for Thursday, July 30. The open meeting will begin at 10 a.m. ET, and the closed meeting will follow immediately after the open meeting has concluded.
In a statement made on Twitter, NCUA Chairman Rodney Hood said, "Now that the (Supreme Court) has made its decision, (the NCUA) Board will consider a final field of membership rule, otherwise known as FOM 3, during the July open board meeting. I look forward to the Board acting on this important matter."
The July open meeting will be available through a live audio webcast only.
CUToday.info will have coverage.
FFIEC Notes Risks From LIBOR Transition
Separately, members of the Federal Financial Institutions Examination Council (FFIEC) have highlighted the risks that will result from the transition away from LIBOR, and, in a released statement, encouraged supervised institutions to continue their efforts to transition to alternative reference rates in order to mitigate financial, legal, operational, and consumer protection risks.
“The financial services industry uses LIBOR as a reference rate for many financial products and instruments that include loans, investments, and deposits to a range of customers, as well as borrowings and derivatives. While some smaller and less complex institutions may have limited exposure to LIBOR-denominated instruments, the transition to alternative reference rates will affect almost every institution,” the FFIEC said.
The statement also highlights the legal and consumer compliance risks associated with inadequate fallback language, when the contractual language does not contemplate LIBOR’s permanent discontinuance.
“Institutions should take steps to identify and address existing contracts with inadequate fallback language to mitigate potential legal risk as well as safety and soundness risk,” the FFIEC said.
The agency added that financial institutions should have risk management processes in place to identify and mitigate their LIBOR transition risks that are commensurate with the size and complexity of their exposure and third-party servicer arrangements. The statement identifies areas where supervisory staff will focus their reviews of LIBOR transition planning and risk mitigation efforts at regulated institutions.