updated 06/18/13 08:02 AM
Regulators Need to Hear From CUs
In today’s regulatory climate, it's imperative credit unions are engaged in the comment process. Regulators need to hear from you on how a proposed rule will impact your credit union, your members, and the credit union movement.
The recent Financial Accounting Standards Board (FASB) proposal regarding accounting for credit losses is of great concern to credit unions. Many are considering the potential impact of material increases to their Allowance for Loan and Lease Losses (ALLL) reserves and the costs of complying with the requirements.
On such an important rule, it is critical regulators hear from credit unions. However, of the nearly 7,000 state and federal credit unions, only 132 (less than 2 percent) credit union and credit union associations submitted comment letters on the proposal.
Click here for a copy of the California and Nevada Credit Union Leagues' comment letter to FASB.
Use 'PowerComment' to Voice Your Opinions
The Leagues understand you are extremely busy running your credit union. That’s why we recently created PowerComment, an online resource that provides you everything you need to find, review, and discuss proposed rules, as well as write and immediately submit your comment letters to the applicable agencies. PowerComment makes it easy to be involved in the regulatory comment process.
While there are several rules currently open for comment, one of significant importance is the National Credit Union Administration's (NCUA) proposed derivatives rule. We encourage all credit unions to review the proposal and write a comment letter to NCUA. Are the requirements to participate in the proposed derivatives program too strict or cost prohibitive? Are the proposed limits appropriate and sufficient to hedge interest rate risk (IRR)? How should the program be paid for—by participating credit unions, or a mutualized system where all credit unions share the cost?
Don’t let another important rule pass without your input in helping shape the final regulation. Use PowerComment today and let your voice be heard!
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