NCUA to Discuss Merger Registry and Regulatory Flexibility
The NCUA Board is scheduled to be briefed at next Thursday's meeting on the status of the registry that the agency is setting up for credit unions that want to be considered as merger partners.
The agency is setting up the registry in response to requests by credit unions and trade associations that there be a more formal process by which credit unions can be considered as prospective merger partners of troubled credit unions.
In addition, the board is scheduled to discuss and vote on a rule that would remove the exemption for regulatory flexibility (RegFlex) credit unions from the rule banning FCUs from investing more than 5% of their shared and retained earnings in fixed assets.
CUNA and NAFCU expressed objection to the proposed rule when it was issued earlier this year.
CUNA wrote that it could "negatively impact credit unions' planned branching activities."
NAFCU wrote that it could negatively affect credit unions not considering expansion because it might prevent them from spending money on items such as hardware and software upgrades to comply with the Truth in Lending Act and Regulation Z.
Credit unions are eligible for RegFlex if they are well capitalized and have CAMEL 1 and 2 ratings.
The board is also scheduled to discuss and vote on the agency's 2011-2016 strategic plan.
NCUA CFO Marty Ann Woodson is scheduled to give a report on the health of the NCUSIF and the Temporary Corporate Credit Union Stabilization Fund.
The meeting is scheduled for 10:00 a.m. ET at the agency's headquarters in Alexandria, Va.