Washington CU Regulator Adds S to CAMEL

The Washington Division of Credit Unions is the latest state regulator to announce that it was adding sensitivity to market risk (S) to CAMEL.

The Division of Credit Unions made the decision so that it can better evaluate the impact of interest rate changes on a credit union’s earnings and economic capital.

In addition, this change will allow the Division of Credit Unions to provide information to credit unions delineating between liquidity and interest rate risks.

It is anticipated that this will improve its discussion of interest rate risk with state chartered credit unions.

This begs the question -- why is the National Credit Union Administration such a laggard in adding sensitivity to market risk to CAMEL?

Read the Bulletin.