Credit Union Exam Solutions Presents With Flying Colors

Credit Risk -Why Its NCUA Top Priority

Mar 3, 2024

Steve Farrar, an expert on NCUA's focus on credit risk, and Todd Miller, a professional analyzing economic impacts on credit unions, bring invaluable insights. They discuss increasing loan delinquency and rising inflation, emphasizing how these factors are straining credit unions. The conversation also explores the implications of CECL, consumer struggles with interest rates, and the urgent need for credit unions to adapt their risk management. Their analysis sets the stage for navigating credit risk in the challenging economic landscape of 2024.

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Intro

00:00 • 4min

Prioritizing Credit Risk in 2024: Trends and Concerns

04:01 • 3min

Economic Strains: Credit Risk and Consumer Challenges Ahead

06:33 • 4min

Analyzing Credit Risk Ratios and Allowance Adequacy

10:19 • 2min

Navigating Credit Risk Management in 2024

12:04 • 4min

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With Flying Colors: Focus on Credit Risk

In this episode, Mark Treichel invites Steve Farrar and Todd Miller to discuss the NCUA's focus on Credit Risk in its Letter to Credit Unions, as well as the impact of the current economic climate on credit unions and their clients. The hosts analyze various contributing factors to this issue, including increased loan delinquency, rising inflation, and changes in the job market. They debate the relationship between CECL and the state of the economy and express concerns about the consumer's current struggles relative to inflation and interest rates. The discussion ends with a reading of the NCUA's letter on Credit Risk, stressing the need for credit unions to review and adjust risk management processes and lending programs, among others.

00:00 Introduction to the Special Episode
01:01 Introducing the Guests: Steve Farr and Todd Miller
04:45 Discussion on Credit Risk and NCUA's Priorities
05:23 Deep Dive into Credit Risk Trends and Concerns
09:37 Impact of CECL and Inflation on Credit Risk
12:56 NCUA's Official Language on Credit Risk
15:56 Conclusion and Sign Off