NCUA Set to Discuss Secondary Capital for Low Income CUs and NCUSIF
NCUA Board members are scheduled to receive a public briefing about a rules change that would let low income credit unions borrow money through the Troubled Assets Relief Program at next Thursday's NCUA Board Meeting.
On Tuesday, board members sent the rules out for a 30-day public comment period on a notational vote after having been briefed privately.
The Obama Administration has authorized credit unions that have been recognized as community development financial institutions by the U.S. Treasury Department's CDFI Fund to apply for up to 3.5% of their total assets in capital from TARP funds. The NCUA's rule change paves the way for federally insured credit unions to participate in the program.
The board is also scheduled to hear a report on the health of the NCUSIF.
The nation's economic difficulties have taken a tremendous toll on some credit unions. At last month's briefing, NCUA Chief Financial Officer Mary Ann Woodson reported that almost 20% of insured shares were in credit unions with a rating of CAMEL 3 or higher.
The meeting is scheduled to take place at 10:00 a.m. at the NCUA headquarters in Alexandria, Va.