Matz talks rebate, rate risk, cyber threats
Feb. 25, 2014 – NCUA Board Chairman Debbie Matz told credit unions Monday that NCUA could provide a rebate to credit unions on corporate stabilization assessments in 2021 if the agency recovers enough funds to “outpace” losses from corporate credit unions’ legacy assets.
Speaking before CUNA’s Governmental Affairs Conference in Washington, Matz pointed to the $1.4 billion settlement from JPMorgan Chase last fall and said the agency is still pursuing recoveries in 15 separate lawsuits.
“Any further recoveries will reduce future assessments to credit unions,” she said. If recoveries exceed losses by 2021, when the Temporary Corporate Credit Union Stabilization Fund expires, “NCUA may even be able to provide a rebate,” she said.
Matz also talked Monday about the agency’s supervisory focus for 2014, noting that NCUA remains focused on interest-rate risk and cybersecurity threats. She recalled the agency’s supervisory letter sent to credit unions last month outlining these priorities and urged credit unions to be wary of both risks.
“The uptick in rates during the second and third quarters of last year caused unrealized gains to become unrealized losses for thousands of you,” she said. “This swing from unrealized gains to unrealized losses marks a dangerous warning of things to come.”
Recalling the Target breach, Matz also noted growing risk from cyber threats. She pointed out the disparity in current law, under which financial institutions must protect sensitive data while data protection standards for retailers remain inadequate.
Matz discussed the voluntary cybersecurity framework released recently by the National Institute of Standards and Technology and said NCUA is part of a federal government working group that is focusing on this issue and vulnerabilities for financial institutions.
NAFCU will soon release a summary of the NIST framework in a Final Regulation for members.
Matz's written remarks