NCUA Chief Economist John Worth says some credit union loan portfolios are unsustainable if interest rates rise as expected.
Interest, liquidity, credit and concentration risk. Here's a concise explanation of each.
This opinion piece looks at different approaches to asset/liability modeling with IRR in mind.
A stronger regulatory focus on managing interest rate risk on the balance sheet has brought to the forefront the requirement that institutions back test their IRR models. Back testing is a means to check the sufficiency of the data, the setup and the assumptions used to produce an analytical report....
If the NCUA board’s proposed $30 million limit to define small credit unions stands, 1,603 credit unions would be excluded from risk-based net worth requirements and a provision of the interest rate risk rule, according to the NCUA’s action memo on the topic.
The Financial Accounting Standards Board recently released a proposed accounting standards update for financial instruments concerning new financial statement disclosures of liquidity risk and interest rate risk. The proposal is one portion of a joint project between FASB and the International Accounting Standards Board on the subject of accounting for...
Letter to credit unions and question-and-answer sheet address the new interest rate risk management rule, which takes effect Sept. 30.
Agency reviews new IRR rules as credit union exposure grows from mortgage lending funded by short-term liabilities.