WASHINGTON -- CUNA submitted a comment letter to the Federal Housing Finance Board last week regarding its proposed Federal Home Loan Bank Rating System.
This new system would assign each FHLB a composite score based upon corporate governance, credit risk, market risk, operational risk, and financial condition and performance, the Oct. 23 letter outlined. "With nearly 900 credit unions as members of the twelve Banks, CUNA supports a strong examination system that will protect all members of the Banks," CUNA Senior Assistant General Counsel Jeffrey Bloch wrote. He noted that credit unions' own examinations have led to "an exceptional safety and soundness record."
Bloch added, "However, we strongly encourage the Board to work with the Banks to ensure that the final version of the Rating System is thorough, yet flexible enough to take into account any unique aspects of Bank operations.
"Although we recognize that examinations are important to ensure safety soundness, they do impose significant burdens on the institutions, and it is important that all the necessary parties work together to eliminate any unnecessary burdens."