Board Action Bulletin
Board Expands Regulatory Flexibility with Final Rules on TIPS and Rural Districts
- A final rule increasing the investment options of federal credit unions by allowing purchases of Treasury Inflation Protected Securities.
- A final rule updating the “rural district” definition to enhance the ability of certain federal credit unions to provide access to affordable financial services.
The Share Insurance Fund ended 2012 with a 1.30 percent equity ratio. NCUA calculated the ratio on an insured share base of $839.4 billion, compared to $795.3 billion at the end of 2011, a growth of 5.5 percent.
- The total number of CAMEL code 3, 4 and 5 credit unions dropped 9.8 percent, to 1,940 at year-end 2012 from 2,150 in 2011.
- Assets of CAMEL code 3 credit unions decreased to $119.3 billion at the end of the fourth quarter of 2012, a 16.3 percent drop from $142.5 billion on Dec. 31, 2011.
- Assets of CAMEL code 4 and 5 credit unions fell 35.4 percent, to $19 billion at the end of 2012, down from $29.4 billion for 2011.
Federal credit unions will now have an additional risk-management tool with the Board’s approval of a final rule (Section 703.14) adding Treasury Inflation Protected Securities (TIPS) as a permissible investment.
The Board bolstered the ability of certain federal credit unions to expand services in rural areas by approving a final rule (Section 701.1) to modify the definition of “rural district” in the agency’s Chartering and Field of Membership Manual.
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