WASHINGTON-Interest rate risk remains the primary concern for NCUA Chairman Debbie Matz heading into 2012.
Processing Content
The chairman said that the agency has a proposed rule to deal with interest rate risk which will be finalized during NCUA's January board meeting.
But, she said, there are a number of CUs with too much interest rate risk on their books, "and if they don't diversify and get some of that interest rate risk off the books, when interest rates start going up, those credit unions will probably not survive."
In response to requests from credit unions, NCUA also plans to issue a proposed rule on troubled debt restructuring in January. Matz said the rule is intended to help CUs better modify mortgages and keep people in their homes.
