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.