ALEXANDRIA, Va.–NCUA is revising its Credit Union Profile form to collect information it says will help examiners determine federally insured credit unions’ (FICUs) exposure to LIBOR – the London Interbank Offered Rate – and their readiness to deal with its discontinuation after 2021.
The news was first reported by Regulatory Report.
The agency said it wants to add two questions to the Profile form – Form 4501A, used to collect non-financial data relevant to regulation and supervision – that will require only “yes” or “no” answers, Regulatory Report said. In a proposed information collection in the Federal Register, NCUA said the information sought “is readily available” and that the agency believes “the two hours currently allotted to complete the Form 4501A is sufficient.”
“These questions are needed to identify FICU[s] that have LIBOR instruments or use LIBOR as a reference rate. Examiners will use this information to assess credit unions’ exposure, governance, risk management and readiness related to the discontinuation of the LIBOR index after 2021,” according to the Register notice as reported by Regulatory Report.
Regulatory Report additionally noted FASB has issued temporary guidance (expected to be finalized in early 2020) aimed at easing the process of stakeholders migrating away from LIBOR to new, replacement reference rates, such as the Secured Overnight Financing Rate (SOFR).
NCUA will be accepting public comments on its proposed Profile form change for 60 days.