NCUA to Deal With Interest Rate Risk
The NCUA Board plans to discuss and possibly send out for comment to next Thursday’s meeting a proposed rule regulating what steps credit unions would have to take to protect against interest rate risk.
It’s a subject that NCUA Chairman Debbie Matz has spoken about several times during her tenure. She has advised credit unions to be proactive, especially in light of the likely increases in interest rates by the Fed and the effect this could have on credit unions’ bottom line.
The board is also slated to vote on a final rule changing the definition of “low-risk assets” to extend 0% risk weighting to debt instruments backed by the NCUA.
The board is also expected to discuss and possibly send out for comment proposed changes in the section of the agency’s rules and regulations that define equity ratio and net worth.
In addition, the board is expected to take a final vote on technical corrections it approved last year to the rule on corporate credit unions. It modifies the definition of collateralized debt obligations to exclude commercial mortgage-backed securities.
NCUA CFO Mary Ann Woodson is scheduled to give a report on the state of the insurance fund.
The meeting is scheduled to be held at 10:00 a.m. at the agency’s headquarters in Alexandria, Va.