New IRR procedures likely released in Q4 by NCUA
Aug. 18, 2016 -- New “interest rate risk” (IRR) procedures will be rolled out in the fourth quarter of this year by NCUA, with a “firm implementation” expected in January, NCUA officials said in a webinar sponsored by the agency Thursday.
According to Larry Fazio, NCUA director of its office of examination and insurance, the fourth quarter release “gives everyone a couple of months to absorb and digest” the new procedures. In particular, he said, that timing is “nice for examiners” to get used to the new procedures during the quarter
NCUA expects to release the procedures as a letter to credit unions, along with guidance to examiners. The agency indicated earlier this summer (at the June NCUA Board meeting) that the new procedures were on the way. Indeed, during the webinar, Fazio noted that NCUA examiners have been participating in training for the new procedures over the last several weeks (which is continuing).
During the discussion, Fazio acknowledged the input provided by state regulatory agencies (as well as other stakeholders) in developing the new procedures.