Net Worth Rule Highlights NCUA Board Agenda
The NCUA Board is scheduled to consider next Thursday a final version of its rule that would redefine net worth ratio.
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.
However, 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.
The proposed rule also mandates that the NCUSIF equity ratio must be based solely on the financial statements of the NCUSIF, and not combined with other financial statements.
The board is also scheduled to discuss a delegation of authority that will give the Office of Corporate Credit Unions additional powers regarding the oversight of corporate credit unions. The NCUA isn’t revealing any additional details.
The NCUA 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 set for 10 a.m. at the agency’s headquarters in Alexandria, Va.