WASHINGTON (4/5/12)--Credit Union National Association (CUNA) and National Credit Union Administration (NCUA) staff, and a credit union CFO, will team up to offer an April 17 webinar on the NCUA's new interest rate risk (IRR) regulation.
The webinar will feature insight from:
- NCUA Division of Capital Markets Director J. Owen Cole Jr.;
- NCUA Division of Capital Markets Deputy Director Mark Vaughn;
- NCUA Office of Examination & Insurance Senior Capital Markets Specialist Jeremy Taylor;
- David D'Annunzio Sr., CFO of Charleston, S.C.'s Heritage Trust FCU; and
- CUNA Senior Economist Mike Schenk.
The NCUA has amended its federal share insurance regulations to include a requirement that federally insured credit unions have both a written IRR policy and an effective interest rate risk management program. Credit unions with less than $10 million in assets are exempted from the new regulation, and a credit union between $10 and $50 million in assets is only subject to the requirements if its first mortgage loans plus investments with maturities over five years equal or exceed 100% of its net worth. The rule will become effective on Sept. 30.
During the webinar, NCUA staff will explain why the agency adopted the rule, which credit unions will be subject to the rule, what is required of those credit unions, and how the rule guidance can help affected credit unions.
Schenk will address recent IRR trends and will bring to light possible future IRR scenarios that credit unions should plan for.
D'Annunzio will discuss the rule and provide practical advice to help prepare and implement the rule from a CFO perspective.
"With the exemptions provided by NCUA to address regulatory burdens on smaller credit unions, about 3,200 credit unions will be subject to this new regulation," noted Kathy Thompson, CUNA Senior Vice President for Compliance. "But the important figure is '800.' That's the number of credit unions that NCUA feels have to build IRR programs and policies to meet agency expectations."
The hour-long webinar is scheduled to begin at 2:00 p.m. CT.
To register for the webinar, use the resource link.