NCUA finalizes CUNA-backed CUSO, CAMELS rules
The NCUA board finalized two CUNA-supported rules and received a cybersecurity briefing at its October meeting. The final rules involve credit union service organizations (CUSOs) and adding changes to the CAMELS rating system.
“We thank the board for finalizing these two rules, both of which will improve the operating environment for credit unions to help them better serve their members,” said CUNA President/CEO Jim Nussle. “The CUSO rule will help credit unions pool resources when necessary to continue to meet loan demand. The CAMELS final rule will provide greater clarity and transparency regarding credit union sensitivity to market and liquidity risk.”
Specifically, the CUSO final rule:
- Expands the list of permissible activities and services for CUSOs to include originating any type of loan that a federal credit union may originate; and
- Grants the board additional flexibility to approve permissible activities and services outside of notice-and-comment rulemaking.
The CAMELS rule adds the “S” (for sensitivity to market risk) component to the existing CAMEL rating system and redefines the “L” (liquidity risk) component.
The cybersecurity briefing noted:
- Ransomware attacks are on an upward trend.
- The Financial Sharing and Information Center (FS-ISAC) believes current supply chain issues will dominate threat landscape discussions.