WASHINGTON–By the end of 2018 NCUA is expected to add an “S” to its CAMEL ratings system to reflect market risk sensitivity, according to the agency’s semiannual report to Congress, which was just published by its Office of Inspector General (OIG). NCUA has been discussing such an addition since 2015.
The objective of adding the “S” is to improve clarity and reporting around interest rate risk represented by a credit union.
The semi-annual report also recommends that in order to better identify fraud its agency’s examiners obtain third-party confirmations when checking account balances or activity significant to credit union operations and that cybersecurity be further improved, especially related to members’ electronic information during the exam process.
Separately, the most recent IG report also shows it published three investigative reports during the prior six-month period and referred one person to the U.S. Department of Justice for criminal prosecution. The report does not identify that individual.