Advantages can be had using risk hedging strategy under new NCUA rules, ALM First consultant says.
The event is free and open to all credit unions.
A new minimum 10.5% risk-based capital ratio would be required of federally insured CUs with more than $50M in assets.
Credit union executives say they can comply, but question some of the rule's risk-weighting details.
Board Member Michael Fryzel said derviatives authority, approved at Thursday's monthly meeting, will cost $2.6 million the first year.
The NCUA's proposed new capital standards for credit unions over $50M raises capital requirements and requires risk-weighting 10 asset classes.
ALEXANDRIA, Va. - The NCUA Board also dialed back the rule's authority to only apply to federally chartered credit unions.
Deputy General Counsel Mary Dunn says CUNA concerned about risk-based capital proposal details, which the NCUA has not shared with trades.
In taking steps to provide federal credit unions with derivatives authority as an additional tool to manage interest rate risk on the balance sheet, the NCUA demonstrated flexible thinking in evaluating its rules. That is to be commended.
Trades oppose high cost of participation and implementation strategies.