ALEXANDRIA, Va.—When the NCUA board meets this week it is scheduled to issue a final rule on derivatives and will also receive its quarterly briefing on the National Credit Union Share Insurance Fund (NCUSIF).
Also on this Thursday’s agenda, the board will issue a request for comment regarding the NCUSIF's normal operating level (NOL) policy.
This will be the second time this year the board has gotten a quarterly update on the NCUSIF, with the primary focus remaining on its equity ratio and whether a premium will need to be charged credit unions. Credit unions and their trade groups have argued any such assessment is unnecessary, as the equity ratio has decreased purely due to the inflow of deposits into credit unions and not as the result of any financial losses.
During the first board briefing this year NCUA Chairman Todd Harper said the NCUSIF is the agency’s top priority for 2021.
As CUToday.info reported here, in a letter to Sen. Pat Toomey (R-PA), Harper asked that Congress make statutory changes to allow the agency more authority to make changes to the NCUSIF.
The derivatives rule was first proposed during the board’s October 2020 meeting. As proposed, the rule would adopt a more principles-based approach to provide credit unions with more flexibility to manage their interest rate risk through the use and purchase of
The meeting, scheduled to begin at 10 a.m. ET, will be available via livestream on the agency's website. CUToday.info will provide complete coverage.