Deposits360°® Monthly Industry Review
This month's Review highlights key trends in DCG’s Deposits360° Cross-Institution database and deposit pricing/volume forecasting models.
Fall 2022 Update: NEV Supervisory Test Pressures Are “High” – Be Prepared
The NCUA recently granted credit unions some much-needed relief under the NEV Supervisory Test (NCUA Letter 22-CU-09). Institutions are no longer subject to an “extreme risk” classification and categorized as "unsafe and unsound." However, while DORs and accompanying de-risking plans are no longer automatic, credit unions may still receive them, especially given the risk of additional rate increases and further depreciation in asset valuations.
It is critical that CUs be overly prepared to defend their risk position and have ironclad policies and plans in place to manage balance sheet risks. Now is not the time to let your guard down, but rather to fortify your risk management process.
DCG’s NEV Supervisory Test Task Force has assisted hundreds of credit unions with this test, including some of the country’s largest and most complex credit unions. Our expertise, experience, proven track record, and tools can help prepare your CU for an upcoming exam or assist you with an existing DOR or de-risking plan.
Forewarned is forearmed. DCG stands ready to help support your business plan while maintaining positive regulatory relations.
The recent rise in rates and steepening yield curve have provided relief for Credit Union earnings and margins. However, net economic values are also dropping at a record pace due to a significant and largely misunderstood element in the NEV Supervisory Test calculation. Click to watch DCG Managing Director Frank Farone and learn why many CUs are migrating to higher risk levels as he shares practical strategies for addressing what comes next.
Video: 45 minutes
Whether you work at a credit union or a bank, you will not want to miss this special episode of “On the Balance Sheet” with the National Credit Union Administration’s Vice Chair Kyle Hauptman.
Kyle joins DCG Managing Directors Vinny Clevenger and Zach Zoia to talk about a wide variety of topics, including his experiences in the banking world and how they shaped his mission in the public sector, working in the Senate and on a Presidential campaign, common sense regulation, and even a nod to Blockbuster Video.
On The Balance Sheet Podcast
Kyle Hauptman | Vice Chair, NCUA