ALEXANDRIA, Va. – The NCUA Board is expected to issue for public comment next week new rules covering capital requirements, risk, investments and governance of corporate credit unions.
Issuance of the long-awaited proposals comes as growing numbers of corporates are falling below capital standards. Three so far, U.S. Central FCU, WesCorp FCU and Constitution Corporate FCU, are receiving NCUA assistance and all but a handful have fallen below NCUA’s minimum capital standards. In recognition of this, NCUA has issued a regulatory forbearance and frozen all corporate capital levels at those reported last Nov. 30 before the troubles at U.S. Central were disclosed publicly and forced the corporates to write down almost all of their capital in U.S. Central.
However, the proposed rule is not expected to deal with the recapitalization or the consolidation of the corporate system, which includes 28 corporates spread across the country.
The proposed rule is expected to be issued for a 90-day comment period. The NCUA Board is also expected to vote an annual operating fee to be assessed federally chartered credit unions and an operating budget for 2010.
