Credit Union Exam Solutions Presents With Flying Colors

Episode Summary:
In this episode of With Flying Colors, host Mark Treichel is joined by former NCUA capital markets expert Todd Miller to discuss the latest updates to NCUA’s Interest Rate Risk (IRR) Supervisory Framework. Following NCUA’s recent stakeholder webinar, we break down key takeaways, including changes to risk categorization, the elimination of the extreme risk rating, and how these updates impact credit unions navigating today’s economic landscape.

What You’ll Learn in This Episode:
✅ The history and evolution of NCUA’s NEV framework
✅ Why NCUA eliminated the “extreme risk” category and what it means for credit unions
✅ The role of examiner judgment in assessing interest rate risk under the new guidance
✅ How credit unions can mitigate risk and avoid a Document of Resolution (DOR)
✅ The growing importance of liquidity management and how credit unions should prepare
✅ Why examiner scrutiny of IRR is increasing, despite the removal of automatic DORs

Key Takeaways from the NCUA Webinar:
🔹 NCUA clarified that interest rate risk remains a top supervisory priority for 2023 and beyond.
🔹 Credit unions must demonstrate strong risk management practices to avoid regulatory action.
🔹 Liquidity risks are increasing due to rising rates and market shifts—credit unions should reassess their funding strategies.
🔹 Open communication with examiners is essential—proactive discussions can help avoid surprises.

Resources Mentioned in This Episode:
📄 NCUA’s Letter to Credit Unions (22-CU-09): [Insert link if available]
🎥 NCUA’s Stakeholder Webinar on Interest Rate Risk: [Insert link if available]
🔍 Learn more about Credit Union Exam Solutions: marktretchel.com