Credit unions say NCUA examiners are pressuring them to keep long-term fixed assets below 35% of total assets, sacrificing income.
Pressured by NCUA examiners and concerned about interest rate risk, credit unions shed mortgages and other fixed rate assets, giving up income.
Although mergers completed in 2013 decreased from 2012, NCUA Economist John Worth said the pace hasn't changed much since 2000.
Credit unions and examiners often disagree on how to manage interest rate risk.
Experts say rising rates themselves aren't the problem; it's the spread that matters.
Despite concerns from examiners, credit unions are better positioned to handle interest rate risk than for-profit competitors.
Volatile interest rates are producing unrealized losses on credit union investment portfolios.
Credit unions increasing IRR by lengthening investment maturities in search of yield, NCUA economist says in YouTube video.
Agency chief economist evaluates interest rate environment, consumer sentiment.
NCUA chief economist said higher rates have decreased mortgage loan activity.