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<p>ALEXANDRIA, Va. – Credit unions having concerns about the valuation of their non-maturity shares, which may provide mitigation of interest rate risk, are being requested to submit feedback on an NCUA study that seeks to provide its examiners with more guidance in this area. Non-maturity shares include share drafts, regular shares and money market accounts. While NCUA believes that the majority of credit unions would not be affected by the results of the study, either because the interest rate risk profile is limited, or because they treat shares at par value for the purpose of measuring interest rate risk, the agency is still seeking comments on procedures that would estimate the retention rate of non-maturity rates. Those credit unions that may be affected by the study’s outcome are those that are concerned about the valuation of their shares to mitigate risk factors under prompt corrective action (PCA). NCUA wants to establish a standard for valuing non-maturity shares and will use the study and comments it receives to plan further steps including guidance for examiners on the appropriate treatment of these instruments in the assessment of interest rate risk. Comments are due to NCUA by April 24 and to CUNA by April 12 and can be faxed to (202) 638-7052 or emailed to Associate General Counsel Mary Dunn at [email protected] or Senior Regulatory Counsel Catherine Orr at [email protected] They can also be mailed to CUNA’s Regulatory Advocacy Department, 601 Pennsylvania Ave., NW, 6th Floor – South Building, Washington, D.C. 20004.</p>

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