The NCUA board will receive a staff briefing on whether it should add an S category to its CAMEL rating system to monitor interest rate risk at the board's June 16 meeting.
The agency's Office of Inspector General recommended adding the category in a Nov. 13 report.
In that report, the OIG concluded the CAMEL rating system may not produce effective IRR when assigning a composite rating to a credit union. The report also said that in the NCUA's assessment of sensitivity to market risk under the L category of its CAMEL rating system, it may understate or obscure instances of high IRR exposure in a credit union.
The OIG said that adding an S rating would improve the agency's ability to accurately measure and monitor interest rate risk by separately assessing a credit union's sensitivity to market risk.
NCUA Chairman Rick Metsger began including staff briefings at the board's May meeting.
Also on June 16, the board will consider a proposed rule that would make technical changes to the rule governing the Community Development Revolving Loan Fund.
The board will also consider an interim final rule that would make statutory inflation adjustments to the civil monetary policy.
Following its public meeting, the board will meet in a closed session to discuss a supervisory matter.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
