NCUA’s Mission Statement

Submitted by sevans on Thu, 02/12/2015 - 3:12pm

Mission:

Provide, through regulation and supervision, a safe and sound credit union system, which promotes confidence in the national system of cooperative credit.”

Reclassification based on supervisory criteria other than net worth.

Subject to §702.102(b) and (c), the NCUA Board may reclassify a “well capitalized,” “adequately capitalized” or “moderately capitalized” new credit union to the next lower net worth category (each of such actions is hereinafter referred to generally as “reclassification”) in either of the circumstances prescribed in §702.102(b).

There are six net worth classifications for new credit unions

Submitted by sevans on Thu, 02/12/2015 - 2:58pm

Net worth categories.

A federally-insured credit union defined as “new” under this section shall be classified (Table 6 page 1))—

(1) Well capitalized if it has a net worth ratio of seven percent (7%) or greater;

(2) Adequately capitalized if it has a net worth ratio of six percent (6%) or more but less than seven percent (7%);

(3) Moderately capitalized if it has a net worth ratio of three and one-half percent (3.5%) or more but less than six percent (6%);

For purposes of this part, a credit union must determine its net worth category classification at the end of each calendar quarter using two measures:

(1) The net worth ratio as defined in §702.2(g); and

(2) If determined to be applicable under §702.103, a risk-based net worth requirement

http://www.ecfr.gov/cgi-bin/text-idx?SID=18208fefa74840c64f9baa71245729d...

 

Three primary FDIC examination goals when auditing for Sensitivity risk

Submitted by sevans on Tue, 02/10/2015 - 3:55pm

FDIC examination procedures follow a risk-focused framework that incorporates the Policy Statement's guidelines and efficiently allocates examination resources. Examination scope will vary depending upon each bank's interest rate risk exposure relative to earnings and capital, and related strength of risk management processes. This section of the Manual is intended to provide a thorough background on the interest rate risk management process and examination guidance related to it. It is not an exhaustive study of IRR measurement methods.

This guidance is divided into eight sections addressing Sensitivity risk

Submitted by sevans on Tue, 02/10/2015 - 3:52pm

This guidance is divided into the following additional sections:

  • Examination Standards and Goals,
  • Types of Interest Rate Risk,
  • Management Responsibilities for IRR,
  • IRR Measurement Methods,
  • IRR Measurement System Review,
  • Variance Analysis,
  • Other Market Risk Factors,
  • Rating Sensitivity to Market Risk, and

Market Risk Glossary.

https://www.fdic.gov/regulations/safety/manual/section7-1.html#introduction

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