ALEXANDRIA, Va. — An application fee proposed by the NCUA could offset as much as 87% of all costs to implement expanded derivative authority through 2014.
The NCUA Board approved a proposed rule Thursday at its monthly board meeting that would permit qualified credit unions to invest in derivative swaps and caps for the purpose of mitigating interest rate risk.
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The fees would range from $25,000 to $50,000 for credit unions seeking Level I authority, and $75,000 to $125,000 for those seeking Level II authority, which would allow a higher transaction limit but would also require more supervision scrutiny.
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