NCUA hears corporate fund, cybersecurity reports
Sept. 15, 2017 -- An increase of nearly $400 million was realized for the net position of the NCUA Temporary Corporate Credit Union Stabilization Fund (TCCUSF) at mid-year, and the new cybersecurity assessment tool (CAT) likely won’t be rolled out for credit unions to use until the fourth quarter of next year, according to two reports given to the NCUA Board at its regular monthly meeting Thursday.
Regarding the stabilization fund, NCUA CFO Rendell Jones told the board that, based on current projections, NCUA expects no future stabilization fund assessments to credit unions. However, he also noted that the agency has no funds available to provide federally insured credit unions with an immediate rebate, reiterating that NCUA must first repay the $1 billion in outstanding Treasury borrowings. (For example, Jones said, a $700 million payment from available cash to the U.S. Treasury in May decreased outstanding Treasury borrowings to $1 billion during the second quarter from $1.7 billion in the first quarter).
Meanwhile, NCUA Office of Examination and Insurance Deputy Director Tim Segerson reiterated to the board that the FFIEC cybersecurity assessment tool “is not mandatory” for use by credit unions, although it will become part of the examination process. NCUA Board Chairman Rick Metsger queried Segerson on that point, suggesting an inconsistency. But Segerson responded that credit unions must have a cybersecurity risk assessment process that is (among other things) effective and fits the size of the credit unions’ operations. The FFIEC CAT, he said, is an “expert protocol” which can help credit unions establish that process. However, as he noted, it is not the only one.