ALEXANDRIA, Va.-NAFCU is urging on NCUA to give its examiners more guidance in examining the new mandated interest-rate management rules, saying its members are increasingly complaining about examiners substituting their own opinions and judgments for that of credit union management.
"For example, some of our members have reported that examiners are steering credit unions toward, and effectively requiring, policy limits and day-to-day franchise management based on...16-year-old industry-wide NERA core deposit study," said NAFCU President Fred Becker in a letter to NCUA Chairman Debbie Matz. "The examiners then suggested the members initiate drastic balance sheet restructuring that would necessitate...many credit unions (having) to curtail their long term lending and much of their member business lending. Shifting assets this way...would drastically reduce net interest margins, thereby reducing net income and the member's net worth, which would seem to be counter-productive to the overall goals of the NCUA."
