The Pulse (05-09-2017)

Volume 6, Issue 19

The Pulse Archive


MnCUN Comments on NCUA’s ANPR for Supplemental Capital

Last week, the Minnesota Credit Union Network, with valuable input from the Regulatory Review Committee, responded to the National Credit Union Administration’s (NCUA) Advanced Notice of Proposed Rulemaking for Alternative Capital.


NCUA issued the advanced notice of proposed rulemaking to solicit comments on alternative forms capital credit unions could use to meet capital standards. Currently, the primary way in which credit unions build capital is through retained earnings. The Federal Credit Union Act only allows low-income designated credit unions to issue secondary capital and be counted toward the net worth and risk-based net worth requirements. An act of Congress would be required to allow credit unions to issue secondary capital that would count toward the net worth ratio, however, the NCUA is considering whether to allow all credit unions to issue supplemental capital that would count toward the risk based net worth requirement.


The Minnesota Credit Union Network strongly supports NCUA’s efforts in exploring ways to reduce the regulatory burden on credit unions and generally supports NCUA authorizing all credit unions to issue supplemental capital. However, we urge NCUA to ensure that with any authority provided, credit unions’ tax status and cooperative, democratic structure is not called into question. We also urge NCUA to develop a final rule that allows flexibility to credit unions while still addressing safety and soundness concerns and avoid any undue risk to the share insurance fund.


Credit unions are encouraged to submit comment letters and to use MnCUN's comment letter as a guide. Comment letters regarding this proposal must be submitted on or before Tuesday, May 9.


Comments may be submitted via email to (include “[Credit Union Name]—Comments on Advance Notice of Proposed Rulemaking for Supplemental Capital” in the subject line of the email) or through the Federal eRulemaking Portal, where a comprehensive summary of the proposed rule as well as instructions on alternative methods for submission are available.


With questions, contact MnCUN VP & General Counsel John Wendland.



MnCUN Member Resource Available: PolicyAid Webinar

As a dues supported service in 2017, the Minnesota Credit Union Network has partnered with PolicyWorks to provide your credit union complimentary access to PolicyAid - an online policy resource which contains over 80 sample policies, and is updated quarterly to help you keep your policies current. In addition, members of MnCUN receive access to free PolicyAid webinars.


To view the newest webinar available, Guidelines for Safeguarding Member Information and Unauthorized Access Response Programs, visit the PolicyAid page on the MnCUN website.


MnCUN member credit unions will receive a secure log in to PolicyWorks' members' only website. In order to set up access to this service, credit unions must designate the appropriate users. 


We are pleased to offer this service to assist the ongoing compliance needs of Minnesota credit unions, and provide additional value for your dues dollars. Feel free to contact John Wendland if you have any questions about this benefit.





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Pactola Commercial Real Estate Seminar – May 22 and 23

Schedule for May 22 and 23 at the Country Inn & Suites by Carlson in Bloomington, this class will focus on all aspects of commercial real estate lending. Presenters will analyze cash flow, rental data, net operating income, and LTV.


This is a great opportunity for:


  • MBL field lenders
  • Credit analysts
  • Department managers who want a refresher
  • Board members or those on a loan committee
  • Other CU staff wanting more info on commercial real estate

More details and registration is available online

Minnesota Credit Union Network
555 Wabasha Street N, Suite 200
St. Paul, MN 55102

(651) 288-5170
(800) 477-1034