NCUA board removes two Corporate Credit Union provisions
04/22/2011 04:48 pm
There was a major development at the NCUA board meeting Thursday April 21. The board removed the two most controversial provisions from the final rule on Corporate Credit Unions’ (CCU) internal risk management, reporting, and corporate governance requirements. The NCUA did not have legal authority to adopt these provisions.
The two deleted provisions, which CUNA and the League strongly opposed in comment letters and in discussions with NCUA officials, would have:
Limited natural person credit unions’ membership to only one Corporate Credit Union
Resulted in a virtual requirement that all entities using the services of a Corporate Credit Union contribute to the Corporate Stabilization Fund, including entities that are not federally insured or financial institutions
In addition, the board approved new services for CCU credit union service organizations (CUSO), adopted a final interpretive ruling and policy statement (IRPS) on NCUA Supervisory Review Committee guidelines, and reviewed reports on the National Credit Union Share insurance Fund and the Temporary Corporate Credit Union Stabilization Fund.
You can read more in-depth below about the four major points brought up in the board meeting. If you have any questions regarding any of the board's activities, contact VP, Regulatory Affairs
Bill Berg at 866.231.0545 ext. 1028 or Director of Compliance
Scott Morris at ext. 2165.