ALEXANDRIA, Va.—The NCUA will vote on finalizing its proposal on bank notes at its open board meeting this week.
The agency has released the agenda for its March 24 meeting, which will include a report on the Temporary Corporate Credit Union Stabilization Fund and discussion of NCUA’s enterprise solutions modernization program.
The current investments regulation limits federal credit unions to investing in bank notes “with original weighted average maturities of less than five years.” The proposal removes the word “original” from the text of the regulation, thereby allowing federal credit unions to purchase bank notes that had original maturities of greater than five years but still have remaining maturities of less than five years.
In a November comment letter on the proposal, NAFCU Regulatory Affairs Counsel Alexander Monterrubio said credit unions have found that the “original” requirement attached to the “weighted average maturity” limitation to be overly restrictive to their investment opportunities and welcomed the change.
CUNA, in its comment on the proposal, found the proposal “does not create additional risk to credit unions, and would give credit unions access to additional investments.”