Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
NEW: Matz Announces NCUA To Propose Stress Testing Rule
COEUR D'ALENE, Idaho (9/18/13, UPDATED 12:20 p.m. ET)--National Credit Union Administration Chairman Debbie Matz announced this morning that the agency's Office of National Examinations and Supervision is drafting a requirement for annual stress tests at credit unions with assets exceeding $10 billion.

Speaking at the National Association of State Credit Union Supervisors' annual State System Summit, Matz noted that the agency is likely to issue the proposed rule for public comment before the end of the year.

"At NCUA, we need to utilize all the tools at our disposal to look ahead in order to protect the industry in the future," Matz said. "Stress tests are forward-looking measures. They're designed to determine whether an institution is holding an adequate capital cushion to survive adverse scenarios and to allow credit unions to make adjustments before a crisis hits."

Now that the agency has made public its plan to pursue a new rule in this area, the Credit Union National Association will be talking with affected credit unions and NCUA officials to minimize the impact and contain regulatory burdens.

The Dodd-Frank Act requires certain financial firms with more than $10 billion in assets to conduct annual stress tests. Matz noted that stress testing is just as important for credit unions of comparable size.

A credit union that fails a stress test would be required to revise its capital plan to demonstrate how it would meet minimum stress test capital ratios, an agency release said.  A credit union that passes the test would benefit from the analysis by identifying potential improvements in its enterprise risk management system.

Matz said one issue still being reviewed is whether stress test results would be publicly available. She noted banks are required to disclose their results, but banks are publicly traded entities, unlike credit unions.

She said public disclosure would enhance transparency to members but results could also be misinterpreted and lead to inaccurate conclusions about a credit union's current stability.


RSS





print
News Now LiveWire
RT @CUEscan: Branches Will Be the Cornerstone of Growth http://t.co/fVqPPaGeVL http://t.co/xxMyKGQMrl
18 minutes ago
RT @asmarterchoice: According to @Bankrate study, customers more likely to find FREE checking at #Creditunion than a bank! http://t.co/ntCb…
22 minutes ago
Ditch monthly subscriptions to save $$, @YoungFreeMI Fielder tells @freep http://t.co/TFnsps4Dui #ASW2015
41 minutes ago
.@federalreserve extends comment period for capital surcharges on systemically important U.S. bank holding cos. http://t.co/MOJJBn9DfA
2 hours ago
~40M tax refunds worth $125B issued as of Feb. 20 @IRSnews reports. Average refund=$3,120 http://t.co/VgcLs6chhq
2 hours ago