The NCUA Board plans to discuss and possibly send out forcomment to next Thursday's meeting a proposed rule regulating whatsteps credit unions would have to take to protect against interestrate risk.

It's a subject that NCUA Chairman Debbie Matz has spoken aboutseveral times during her tenure. She has advised credit unions tobe proactive, especially in light of the likely increases ininterest rates by the Fed and the effect this could have on creditunions' bottom line.

The board is also slated to vote on a final rule changing thedefinition of “low-risk assets” to extend 0% risk weighting to debtinstruments backed by the NCUA.

The board is also expected to discuss and possibly send out forcomment proposed changes in the section of the agency's rules andregulations that define equity ratio and net worth.

In addition, the board is expected to take a final vote ontechnical corrections it approved last year to the rule oncorporate credit unions. It modifies the definition ofcollateralized debt obligations to exclude commercialmortgage-backed securities.

NCUA CFO Mary Ann Woodson is scheduled to give a report on thestate of the insurance fund.

The meeting is scheduled to be held at 10:00 a.m. at theagency's headquarters in Alexandria, Va.