ALEXANDRIA, Va. (5/20/15)--The Financial Stability Oversight Council (FSOC) recommended in its 2015 annual report granting the National Credit Union Administration examination and enforcement powers over third-party service providers.
NCUA Chair Debbie Matz said she was pleased with the recommendation.
“I urge credit union officials to read this report carefully because, in particular, the recommendations on cybersecurity, interest-rate risk and asset-liability management are critical to the continuing health of the industry,” she said.
Matz, who is one of 10 voting members of the FSOC, also added that she views the NCUA’s current inability to examine credit union service providers as a significant regulatory gap.
Historically, CUNA has not supported additional oversight authority over third-party vendors for the agency. CUNA has raised concerns about agency's expertise in the area and the implications for the agency's budget, which has been increased for the last seven years.
The FSOC report also examines the interest-rate risk that comes with the current low-yield environment.
Matz that she believes credit unions have increased their risk-taking in recent years, the monitoring of which she says is a high priority area for the NCUA.
Also in its report, FSOC noted that the U.S. financial system is under significant threat from potential cyberattacks.