The NCUA board will receive a staff briefing on whether it should add an S category to its CAMEL rating system to monitor interest rate risk at the board's June 16 meeting.
The agency's Office of Inspector General recommended adding the category in a Nov. 13 report.
In that report, the OIG concluded the CAMEL rating system may not produce effective IRR when assigning a composite rating to a credit union. The report also said that in the NCUA's assessment of sensitivity to market risk under the L category of its CAMEL rating system, it may understate or obscure instances of high IRR exposure in a credit union.
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