Interest rate risk poses a significant threat to the credit union system, and the
The new page includes videos, charts showing trends that affect interest rate risk, and links to NCUA regulations and letters to credit unions, interagency guidance, and best practice resources. NCUA's newest video about interest rate risk and the questions credit unions should answer is also posted on the resource page and NCUA's YouTube channel (https://www.youtube.com/user/NCUAchannel).
NCUA Board Chairman
"We are in a very unusual rate environment," Matz said. "The credit union system is faced with extraordinary interest rate risk challenges. At the same time, there have been significant shifts in the composition of assets and liabilities over the past several years.
"In the event of a rapid change in interest rates, the result at some credit unions would be stressed earnings and the possibility of large declines in economic value. While we are aware that many credit unions are well positioned to manage this risk, there are others that have potentially excessive exposure to interest rate risk that could result in losses to the entire system."
"A critical emerging risk is the way credit unions are using their investment portfolios," said NCUA Chief Economist
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