ALEXANDRIA, Va. – NCUA already has begun analyzing the more than 2,300 pages of the bank reform bill in preparation for the numerous provisions that will have to be adopted for credit unions, including those covering the permanent increase in deposit insurance coverage, executive compensation, remittance transfers and appeals of conflicting supervisory determinations on consumer protection.
The bill, which will create a new oversight scheme for too-big-to-fail financial institutions, regulate financial derivatives and Wall Street rating agencies, and develop a consumer financial protection bureau, is expected to be signed into law by President Obama on Wednesday.
While credit unions have focused on the interchange amendment that will regulate fees on debit card transactions, NCUA must write its own rules for credit unions on a variety of provisions. “NCUA has reviewed the new law and will begin drafting implementing rules on the timetable specified by its provisions,” John McKechnie, spokesman for the agency, said on Friday.
Among the provisions requiring NCUA adaptations are:
Title III, which makes $250,000 deposit insurance permanent standard. NCUA will need to amend its regulations accordingly.
Also, the bill authorizes NCUA to fully insure the net amount maintained in noninterest-bearing transaction accounts in addition to other share insurance coverage. NCUA must change its rule there, too.
Title IX requires NCUA, the Federal Reserve, OCC, FDIC and other federal regulators, to jointly set regulations requiring regulated entities with assets of $1 billion or more to disclose the structures of all incentive-based compensation arrangements if those arrangements provide excessive compensation or could lead to material financial loss.
In the consumer protection title (Title X) there is a section called Appeals of Conflicting Supervisory Determinations, which provides for NCUA to have a representative on the panel to hear appeals by credit unions on certain unresolved disputes between the Bureau of Consumer Financial Protection and the prudential regulator [Fed, FDIC, OCC, or NCUA, as the case may be] regarding supervisory actions resulting from examinations of banks, savings associations, and credit unions with assets over $10 billion.
Section 1073 on remittance transfers requires NCUA (and the federal banking agencies) to provide guidelines (not regulations) to financial institutions under their jurisdiction regarding the offering of low-cost remittance transfers.
