ST. LOUIS — NCUA senior staff today provided some insight into the direction the new corporate regulation will take.
NCUA General Counsel Bob Fenner outlined five key problems the new regulation will address. First, the agency is considering Basel-type capital requirements for corporates with two tiers of risk-weighted capital and a leverage ratio.
Concentration limits will also play a role. Specifically NCUA is considering the lesser of 25% of assets or five times capital.
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The agency will be looking at new limits in weighted average life of assets and differentials of assets and liabilities, as well as new stress testing for credit spreads.
Other pieces to the proposal will set corporate board member requirements and eliminate the preferential treatment of capital.
Fenner emphasized that nothing is set in stone.
NCUA Chairman Debbie Matz emphasized, "We're trying not to be prescriptive as to what the corporates do and what they look like."
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