Regulatory Alerts2020-06-29
Idaho Department of Finance Guidance Statement 2020-04-FIB: Sensitivity to Market and Interest Rate Risk
The Idaho Department of Finance issued Guidance Statement 2020-04-FIB to require state-chartered credit unions to adopt the CAMELS rating system, which separates Sensitivity to Market Risk into a distinct 'S' component. This change aims to better delineate interest rate risk from liquidity risk, ensuring that examiners explicitly assess how changes in interest rates affect earnings and capital. The guidance clarifies that while the rating structure has changed, supervisory expectations for risk management remain unchanged and the document serves as an agency interpretation of existing law rather than new legislation.
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