ALEXANDRIA, Va. – NAFCU on Friday called on NCUA to give its examiners more guidance in examining the new mandated interest-rate management rules, saying its members are increasingly complaining about examiners substituting their own opinions and judgments for that of credit union management.

“For example, some of our members have reported that examiners are steering credit unions toward, and effectively requiring, policy limits and day-to-day franchise management based on…16-year-old industry-wide NERA core deposit study,” said NAFCU President Fred Becker in a letter to NCUA Chairman Debbie Matz. “The examiners then suggested the members initiate drastic balance sheet restructuring that would necessitate selling large portions of the long-term (three years or longer) investments and long-term (five years or longer) loans and shift those dollars into very short term and/or floating rate loan and investment products without regard to current economic forecasts that expect rates to remain at current low levels for another one to three years.”

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