NCUA Board Will Propose Derivatives Rule
The NCUA’s monthly board meeting agenda for next week includes a proposed rule on the use of derivatives, and a final rule that makes technical amendment changes to several parts of the regulator’s Rules and Regulations.
The meeting is scheduled for Thursday, May 16 at 10 a.m. at the NCUA’s Alexandria, Va. headquarters.
The derivative rule has been pending for some time, with the NCUA first requesting comment on the topic in June 2011, and seeking further input with a formal 60-day comment period in January 2012.
“The staff has worked closely with a credit union community working group. This issue is so very complicated and we want to get it right,” NCUA Board Chairman Debbie Matz said during a February webinar.
Matz said the NCUA will consider allowing credit unions with the appropriate expertise in derivatives to use the tool to hedge against interest rate risk.
Additionally, the board will hear a briefing on a supplemental interagency proposed rule that would apply to appraisals for higher-priced mortgage loans.
In a closed-door session, the board will consider two supervisory actions and will also hear an appeal regarding a change to the senior management team, board or committee at a credit union that is in troubled condition or is newly chartered.
According to NCUA Rules and Regulations, the board or its designee may disapprove such changes if the competence, experience, character or integrity of the individual submitted would not be in the best interest of members or the public.
If a credit union wishes to challenge NCUA disapproval, officials must request reconsideration by the regional office, which must act on the request within 30 days. Credit unions dissatisfied with the regional director’s decision may then appeal directly to the board.