Despite myriad indications that net interest income, balance sheet spread, net economic value, and net worth have improved meaningfully, the NCUA’s NEV Supervisory Test results suggest widespread elevated levels of risk across the industry and a growing list of credit unions moving toward “Extreme Risk.”

Currently, credit unions that fall in the Extreme Risk classification are by definition considered “unsafe and unsound.” In the absence of regulatory change, credit unions should be prepared for the possibility of a DOR and "De-Risk" mandate.

 

The challenge quickly becomes a matter of managing through this process while supporting the CU's true risk position. DCG's NEV Supervisory Test Task Force stands ready to help.

Trending Topic

NCUA NEV Supervisory Test

A critical classification – and strategic imperative – for Credit Unions. 

The NEV Sup Test 'Perfect Storm' Has Arrived with a Vengeance

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

SPECIAL EPISODE: Kyle Hauptman, Vice Chair, NCUA

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

Share

Podcasts

Whitepaper

The NEV Supervisory Test “Perfect Storm:”
Independent Observations on High-Performing Credit Unions

• The Key Issue to Understand and Push for Change
• Five Action Steps for Credit Unions to Take Today
• Avoiding Unintended Consequences

25MB

Featured Insights

Webinar Replay

Recent Speaking