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NCUA: We encourage you to review the new IRR rule on the NCUA website located at http://www.ncua.gov/Resources/Documents/LCU2012-05.pdf

You are subject to the requirements of the final rule if:

• Your credit union’s assets exceed $50 million, as shown by your most recent Call Report filing; or

• Your credit union’s assets are equal to or greater than $10 million but do not exceed $50 million and the sum of your first mortgage loans held and investments with maturities exceeding five years is equal to or greater than 100% of your net worth at quarter end.

Beginning on September 30, 2012, certain federally insured credit unions (FICUs) will be required to adopt a written policy on interest-rate risk (IRR) management and a program to implement it effectively.1

This rule affects only 45% of credit unions, yet covers 96% of credit union assets. Boards and management of affected credit unions must be vigilant and well-prepared before interest rates rise. Exposed credit unions without appropriate interest rate risk policies pose unacceptable and preventable risks to the National Credit Union Share Insurance Fund.