In a letter sent yesterday to CUNA, NAFCU President Fred Becker agreed to modify his group's alternative capital proposal to allow NCUA assistance to credit unions to be counted as alternative capital.
"NAFCU is also willing to support assistance to credit unions provided by the National Credit Union Administration (NCUA) Board under 12 USC ? 1788 (208 Assistance) being counted as alternative capital," the letter, addressed to CUNA President Dan Mica, said.
"NAFCU believes that this form of specific assistance has a direct correlation to helping protect the share insurance fund. In the past, NAFCU has supported the inclusion of Central Liquidity Fund (CLF) funds as capital for the corporate credit unions as an emergency measure (directly relative to systemic risk) and has supported changes to net worth for the purposes of the Troubled Asset Relief Program (TARP) assistance for the sake of parity."
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