ALEXANDRIA, Va. The NCUA Board next week will issue for comment a proposal requiring the largest credit unions, those over $10 billion in assets, to undergo stress tests similar to those applied by the Federal Reserve to the biggest banks.
The Dodd-Frank Act requires certain financial firms with more than $10 billion in assets to conduct annual stress tests and NCUA Chairman Debbie Matz said last month that stress testing is just as important for the biggest credit unions.
There are currently four CUs with over $10 billion—Navy FCU, North Carolina SECU, Pentagon FCU and BECU, with California’s SchoolsFirst FCU poised to hit the mark any day now.
The NCUA Board will also issue a final rule requiring all credit unions to institute an emergency liquidity plan identifying an optional form of federally backed funding.
The Board at next week’s monthly meeting will also be briefed on a proposed interagency rule that would set new standards for flood insurance, including a requirement that all lenders provide a private option to the National Flood Insurance Program.
