Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
NCUA addresses asset reduction via Feds EBA program
ALEXANDRIA, Va. (7/28/11)—The National Credit Union Administration (NCUA) sent a letter to federally insured credit unions (11-CU-10), intended to educate those unions who are members of corporate credit unions, on the Federal Reserve Bank Excess Balance Account (“EBA”) Program. The NCUA letter said that as the corporates share their business plans with their member credit unions, many of these plans note a “considerable reduction in asset size (that) will dictate lower amounts of contributed capital from member credit unions” to meet regulatory capital requirements. One tool some CCUs are considering as a means to reduce asset size, the letter said, is the Fed’s EBA plan, and the letter included a fact sheet on the program. The NCUA explained that in 2009 the Fed established limited-purpose accounts at Federal Reserve Banks (FRBs) for the purpose of maintaining excess reserve balances. The EBAs are intended to allow eligible institutions, which includes member consumer credit unions, to earn interest on their excess balances in an account relationship directly with a FRB without significantly disrupting established business relationships with their correspondents credit unions. The NCUA letter also provides information on:
* How EBAs work; and * Due diligence requirements.
Use the resource link to access the NCUA letter.
Other Resources

RSS





print
News Now LiveWire
.@NACHAOnline report: ACH volume increases to 23B payments in 2014 http://t.co/va2WYMh4Zv
1 day ago
.@CUNA's @HampelBill in @washingtonpost on options for wary mortgage borrowers: http://t.co/CPSgTNgwmm
1 day ago
Housing starts thaw, mortgage rates stand pat #Market #NewsNow http://t.co/hhPj5v5AH3
1 day ago
.@CUNA files #RBC2 comment, urges #CU system to be heard #NewsNow http://t.co/yfoZHAMlZc
1 day ago
#NewsNow Youth Month attracts 100,000th member for Mich. CU http://t.co/cgF5o83XlK
1 day ago