The Banking Brotherhood (FRB, FDIC, NCUA and OCC) released a list of frequently asked questions regarding the new accounting standards that introduced the Current Expected Credit Losses (CECL) methodology.  The intent of releasing the questions is to help institutions and examiners understand and abide by the new requirements. The new FAQs, which join 23 others originally published in 2016, cover … Read More

NCUA Stabilization Fund Proposed Closure

From the NCUA – NCUA Board seeks comment on Stabilization Fund Closure and Share Insurance Fund Normal Operating Level Credit union system stakeholders are invited to comment on NCUA’s proposed plan to close the Stabilization Fund in 2017. To facilitate the closure and ensure the Share Insurance Fund has sufficient equity to absorb potential losses on NCUA’s claims against the … Read More

W-2 and 1099-MISC Filing Dates Change

The Internal Revenue Service has published [82 FR 33441] final and temporary rules effective immediately affecting the due dates for submission of certain information returns. Among the changes are a new due date of January 31 for information returns in the W-2 series and Forms 1099-MISC. The changed deadlines are meant to reduce the IRS’s exposure to paying tax refunds early … Read More

CECL Resources

From NAFCU (http://www.nafcu.org/News/2017_News/April/NAFCU-sponsored_CECL_study_gives_CUs_guidance/?utm_source=NAFCU+Today&utm_medium=Email&utm_campaign=daily+news&_zs=n9tFa1&_zl=tvNn3) A newly released, NAFCU-sponsored study outlines some of the key qualities and trade-offs for a variety of models for implementation of the Financial Accounting Standards Board’s current expected credit loss accounting standard, which starts taking effect for credit unions in fiscal years beginning after Dec. 15, 2020. Accessing the study requires you to provide your contact information, … Read More

DCU Bulletin B-17-07 Assets in the Process of Liquidation

The Division of Credit Union published Bulletin B-17-07 regarding the reporting of assets in the process of liquidation.  The Bulletin is reprinted below.  Please refer to the original link for footnotes. Assets in the Process of Liquidation The purpose of this bulletin is to set guidelines for how examiners will evaluate assets in the process of liquidation during examinations. Specifically, … Read More

ANPR – Alternative Capital

The NCUA issued an Advanced Notice of Proposed Rulemaking (ANPR) regarding alternative capital for federally insured credits.  Credit unions could use the alternative capital to meet required capital standards. The ANPR divides alternative capital into two categories:  secondary capital and supplemental capital.  Currently, secondary capital is only allowed for low-income designated credit unions and is counted toward both the net … Read More

Interest Rate on Reserve Balance Requirements

The Board of Governors of the Federal Reserve System (“Board”) is amending Regulation D (Reserve Requirements of Depository Institutions) to revise the rate of interest paid on balances maintained to satisfy reserve balance requirements (“IORR”) and the rate of interest paid on excess balances (“IOER”) maintained at Federal Reserve Banks by or on behalf of eligible institutions. The final amendments … Read More

NCUA Letter to Credit Unions 16-CU-08 Interest Rate Risk

Effective January 1, 2017, NCUA will institute changes to the agency’s interest rate risk review procedures and adopt a standardized measurement of interest rate risk to scope and rate interest rate risk assessments more efficiently and effectively. Field staff will implement these changes using the enclosed Interest Rate Risk Review Procedures Workbook and Guide to Using NCUA’s Interest Rate Risk … Read More

Online Payment Process for DCU Semi-Annual Asset Assessment Fees

Online Payment Process for DCU Semi-Annual Asset Assessment Fees DCU Bulletin B-16-09, July 7, 2016 Chapter 31.12 RCW authorizes the Director to charge fees to credit unions and certain other persons in order to cover the costs of the operation of the division of credit unions and to establish a reasonable reserve for the division. Chapter 208-418 WAC is amended … Read More

Current Expected Credit Losses

On June 16, the Financial Accounting Standards Board (FASB) issued its final standard on credit losses; the Current Expected Credit Losses (CECL) model.  The standard follows a Life of Loan Concept that allows financial institutions to leverage its current internal credit risk systems as a framework for estimating expected credit losses.  The standard requires organizations to measure all expected credit … Read More