NCUA to Unveil Proposed Rule on Derivatives at Friday’s Meeting
The NCUA Board is scheduled to unveil its proposed rule for credit unions’ use of derivatives at Friday’s meeting.
The agency currently has a pilot program on derivatives and only nine federal credit unions had outstanding derivatives contracts at the end of last year, according to the NCUA. Credit unions use them to hedge interest rate risk.
The board is also scheduled to discuss and vote on a final version of a rule to allow federal credit unions to use "statistically valid" random samples of member income data to prove their low-income status.
It would also let credit unions that do not qualify as low-income according to the Cue’s encoding software to draw member income data from their own loan files or surveys.
The board also is slated to consider technical corrections to the rule approved earlier this year regulating "golden parachutes" and indemnification payments.
The board is also scheduled to hear a report on the health of the NCUSIF and the Temporary Corporate Credit Union Stabilization Fund.
The meeting is at 10 a.m. Friday at the agency’s headquarters in Alexandria, Va.
There will be complete coverage online at www.cutimes.com.