NCUA Removes Net Worth Definition Rule from Thursday’s Agenda
The NCUA won’t consider a final version of its rule to redefining net worth ratio at its Thursday meeting, the agency announced today.
The agency issued a proposed rule in March that would let assistance from the agency to a troubled credit union or a credit union acquiring a troubled credit union to count as regulatory net worth.
But several trade associations and credit unions expressed concern about a provision in the proposed rule to deduct “bargain purchase gain” in certain credit union mergers from regulatory net worth. Those letter writers, including CUNA, NASCUS and Schools First FCU, said the provision, which refers to a gain on financial assets acquired for less than fair market value, should be studied more by the agency and subject to a separate rule.
CUNA President/CEO Bill Cheney reiterated his concerns in a letter he wrote NCUA Chairman Debbie Matz yesterday.
The NCUA Board meeting is scheduled to be held at 10:00 a.m. on Thursday.