NCUA Issues Compliance Guidance to Corporate CUs
Noting that next year will be a "critical period for corporate credit unions,'' the NCUA issued a guidance letter detailing their compliance obligations under the new corporate credit rule approved by the NCUA Board in September.
The letter noted that business plans are due by March 31 and until then district examiners will be in frequent contact to "obtain an early understanding of your proposed strategic and capital compliance plans.''
Between April 1 and Sept. 30, corporate credit union leaders can expect "ongoing, close supervision'' to ensure the credit union is working toward successful implementation of its plans. By Sept. 30, the corporate credit union must demonstrate sufficient capital subscriptions to achieve 4% leverage and 2% NEVF ratios by Oct. 20.
The NCUA said the documents, which include timelines, rules summaries recommendations for what corporate credit unions should include in their compliance plans, will also help natural person credit unions. The agency said having access to the information will help those credit unions make informed decisions about the future of the corporate credit union system.
To read the letter, go to: http://www.ncua.gov/Resources/CorporateCU/Files/CorpLetters/2010/2010-02.pdf
To read the supplementary information sheets, go to: