While mortgage loans still make up the majority of credit unions' long-term asset portfolios, fixed assets, business loans and other long-term investments have grown beyond 35% of the industry's overall balance sheet.
That level raises a red flag for regulators concerned about interest rate risk exposure.
Credit union executives and consultants have decried as arbitrary NCUA's 35% tipping point, but the prescription for potential balance sheet ills is not that simple and not without other considerations, said John Worth, the NCUA's chief economist.
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