Credit unions should contact their state or federal regulator ifmarket conditions cause “unusually large deposit inflows or drawson existing lines of credit,” NCUA Chairman Debbie Matz wrotecredit unions Wednesday.
|She wrote that the combination of the decision by Standard &Poor's to downgrade the United States' long-term debt rating andmarket volatility could cause strains on the credit union systemthough she noted that credit unions have “ample capacity to meetmembers' financial needs.”
|Matz said that even after the Standard & Poor's downgradethe agency's examiners have assigned zero risk weights to creditunions' investments in Treasury Securities and NCUA GuaranteedNotes.
|The agency's guaranteed notes were among the securities thatS&P downgraded. However, they have all been collateralized andsold.
|She also noted that the S&P downgrade only covers fourunsecured debt issues from two corporate credit unions that theagency guaranteed under its Temporary Corporate Credit UnionLiquidity Guarantee Program.
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