CU Times: NCUA drafts separate IRR rule
Wednesday, November 12, 2014
Posted by: Credit Union Times
The NCUA has removed interest rate risk from the agency’s risk-based capital proposal and plans to introduce a separate IRR rule in the future, reported Credit Union Times on Monday, November 3.
“That proposed rule is likely to come to the board in the first half of 2015,” said John Fairbanks, NCUA public affairs specialist.
Paul Gentile, president/CEO of the Massachusetts Credit Union League, New Hampshire Credit Union League and the Credit Union Association of Rhode Island, attended an Oct. 30 meeting with NCUA Board Chairman Debbie Matz and other agency staffers where several regulatory issues, including IRR, were discussed.
“The way interest rate risk was accounted for in risk-based capital was not appropriate,” Gentile told CU Times Monday.
He applauded the NCUA’s decision to remove IRR from the risk-based capital proposal but said a separate IRR rule might not be necessary.
“I don’t think we necessarily have to have that rule going forward,” Gentile said. “We have an IRR regulation on the books, we have policies and procedures for what credit unions need to do so I’m not sure we need anything further than what we already have.”
This full article originally published at Credit Union Times here.