The NCUA Board issued a final rule to make minor technical amendments to various provisions of its regulations. These technical amendments correct minor drafting errors and inaccurate legal citations and remove unnecessary regulatory provisions no longer applicable to federally insured credit unions. The final rule becomes effective on February 05, 2019.
Among others, the final rule removes amendatory instruction 11 from the NCUA's risk-based capital rule. That instruction directs the Federal Register to edit a section reference in § 702.504(b)(4) of the NCUA's regulations. However, the Board recently removed § 702.504(b)(4) and redesignated paragraphs (b)(5) and (6) as (b)(4) and (5), respectively, as part of the capital planning and stress testing rule. Accordingly, there is no longer a corresponding section reference for the Federal Register to amend. To avoid an editorial note in § 702.504 highlighting this discrepancy, the final rule withdraws instruction 11.
Additionally, the final rule corrects an inaccurate cross-reference in § 741.3(b)(5) of the NCUA's regulations. That provision directs stakeholders to Appendix B to part 741 for guidance on how to develop an interest rate risk policy and an effective interest rate risk program. The NCUA's equity distribution rule eliminated Appendix A to part 741 and redesignated Appendix B as Appendix A. Accordingly, the Board is amending § 741.3(b)(5) to include the correct cross-reference to current Appendix A to part 741 which contains the NCUA's guidance on interest rate risk policies.
Related Link: Federal Register Notice
Effective Date: February 05, 2019
Keywords: Americas, US, Banking, Insurance, Capital Adequacy, Interest Rate Risk, Credit Unions, NCUA
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