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The NAFCU Share Insurance Committee today will hear from NCUA Director of Capital and Credit Markets J. Owen Cole on interest rate risk supervision and receive an update on the National Credit Union Share Insurance Fund and Temporary Corporate Credit Union Stabilization Fund from agency CFO Rendell Jones.

NAFCU Chief Economist and Director of Research Curt Long will be on today's call.

Cole's capital and credit markets division develops policies and procedures related to credit union investments, asset liability management, credit risk and liquidity.

During NCUA's June board meeting, agency staff briefed the board on the recommendation to add an "S" rating for credit unions' sensitivity to market risk to the CAMEL Rating System. NCUA's inspector general office last November recommended adding "S" to CAMEL to "improve interest rate risk clarity and transparency." The agency has since formed a working group to look at how to oversee interest rate risk from a supervision standpoint, and it has developed an IRR Supervisory Test.

NAFCU expects to see guidance from NCUA on the interest rate risk component later in the summer, and it expects examiner training to conclude in the fall, with a roll-out of new supervision procedures by year-end.

Jones' office at NCUA is responsible for agency budget preparation and management, ongoing finance and accounting functions, the administration of credit union operating fees and NCUSIF capitalization deposits and operations. In May, the TCCUSF made a payment to Treasury of $700 million, bringing the fund's outstanding borrowing with Treasury down to $1 billion.