ALEXANDRIA, Va.–NCUA Board Member Mark McWatters is reminding CUs that NCUA will roll out a revised interest-rate-risk supervisory tool that examiners will employ beginning in the first quarter of 2017.
“As I have indicated in the past, however, the inevitability of interest rate increases at some future date does not mean that NCUA should micromanage credit unions’ efforts to address interest rate risk, and that includes the agency’s actions incorporated through the implementation of the new interest-rate-risk examination tool,” McWatters writes in the latest issue of The NCUA Report.
Separately, speaking to the agency’s consideration of plans to add an “S” to the CAMEL rating system, McWatters said that “Much work remains regarding interest rate risk should the agency elect to revise the CAMEL system in this manner. The ensuing rulemaking and implementation process would most likely take a year or two. Changing the CAMEL system to reflect a separate focus on interest rate risk would enhance the agency’s capabilities to evaluate interest-rate-risk management and exposure by a credit union, as well as the credit union system.”
Also In the latest issue of The NCUA Report, NCUA’s Office Small Credit Union Initiatives details what ransomware is and the increasing role it plays in cyberattacks against smaller financial institutions. The article also provides resources that credit unions can use to prevent and respond to these attacks.
The October 2016 issue of The NCUA Report newsletter is available online here.
Other articles in the Report:
- Chairman’s Corner: Improving NCUA’s Exam Process for Efficiency, Effectiveness, Flexibility
- Result in Micromanagement
- Board Actions: Stabilization Fund’s Net Income in Second Quarter Tops $425 Million
- Planning and Testing Are Key to Being Able to Recover from a Disruption
- Reminder: Nominations for Consulting Services Due Nov. 30
- Outlook Looks Strong As the Fed Moves Closer to Raising Rates
- State Credit Union Data Show Growth in All Major Categories
- Submit Voluntary Diversity Checklist by Nov. 30