The NCUA will likely propose stricter rules to regulate allowable risks for corporate credit unions but won't specify the number of corporates that will remain, NCUA Chairman Debbie Matz told Credit Union Times last week.
"We won't prescribe how many [corporate credit unions] there will be, but we will set out parameters for how they should function. One area was risk, if we had stronger regulations about the concentration of risk and more closely regulated the types of securities, it might have had an impact on the current situation," she said in an interview.
She also said there would likely be changes to the rules on corporate credit union governance to ensure that boards are staffed with people who are qualified and less likely to make some of the mistakes that caused the problems at U.S. Central Corporate Federal Credit Union and Western Corporate Federal Credit Union.
Matz, who began her tenure as chairman on Aug. 24, said they hope to get proposed rules out for public comment before the end of the year. Board members and staff are reviewing comment letters and coming up with proposals. They are also seeking additional public input at the three town hall meetings, the first of which is scheduled to takes place tomorrow in Clayton, Missouri, just outside of St. Louis.
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