The National Credit Union Administration is taking another stab at tightening its oversight of corporate credit unions.
The new proposal backs off the agency's original plan to require corporates to match the maturities of their assets and liabilities. It also splits compliance into three tiers, with the toughest rules - including capital standards - reserved for the most sophisticated corporates.
The country's 41 corporates serve as liquidity centers for credit unions. How the corporates invest the industry's money came under scrutiny last year when Capital Corporate Federal Credit Union collapsed after high interest rates devalued its collateralized mortgage portfolio.
The original proposal, released in April 1995, was criticized as too tough. It was withdrawn last summer, and the administration has been trying to hammer out acceptable regulations ever since. The new proposal is out for comment for three months.