NCUA issued a Letter to Credit Unions (22-CU-09) Thursday updating its Interest Rate Risk (IRR) supervisory framework. CUNA wrote to NCUA last week sharing credit unions’ IRR concerns and requesting NCUA change its policies to provide greater examiner flexibility.
“We thank NCUA for quickly providing relief for credit unions facing declining Net Economic Value (NEV) Supervisory Test ratings due to the rapidly changing interest rate environment, said CUNA President/CEO Jim Nussle. “NCUA’s actions to provide examiners more flexibility and eliminating the ‘extreme risk’ classification will minimize any adverse impact on credit unions despite unchanged balance sheets.”
The primary changes to the NCUA’s supervisory framework are:
Registration is open for an NCUA webinar on these changes Sept. 15, starting at 2:30 p.m. ET.