Problems in Greece, Spain and other Euro zone countries could show up on credit union balance sheets, according to industry economists.
News from Europe has caused volatility in the stock market, said NAFCU President/CEO Fred Becker, which could spur a flight to safety by nervous investors who pull money from the stock market and place it in federally insured deposit accounts. Credit unions, already dealing with excess liquidity, could face even more pressure maintaining well-capitalized net worth ratios.
Becker outlined his concerns in a June 12 letter to NCUA Chairman Debbie Matz, in which he called on the regulatory leader to advise examiners to "discount and disregard a decrease in a credit union's net worth that is solely due to an influx of liquidity as pertains to recent global economics events."
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
