Thursday, April 20, 2017

197 Problem CUs at the End of Q1 2017

The number of problem credit unions edged higher during the first quarter of 2017, according to the National Credit Union Administration (NCUA).

At the end of the first quarter, there were 197 problem credit unions -- an increase of 1 credit union from the prior quarter. A year earlier there were 218 problem credit unions.

A problem credit union has a composite CAMEL rating of 4 or 5.

At the end of the first quarter, 0.83 percent of total insured shares were in problem credit unions -- unchanged from the prior quarter.

5 comments:

  1. Replies
    1. The list of troubled CUs is not published.

      You will have a hard time coming up with an unofficial list as NCUA as a rule does not make public enforcement actions against credit unions.

      Delete
  2. Do credit unions under conservatorship count as a problem credit union? And regarding CUs under conservatorship, are there any impacts to members who have over $250k in share accounts? The NCUA seems to ignore this issue in their press releases that announce conservatorships.

    ReplyDelete
    Replies
    1. Being designated as a problem credit union is based on CAMEL rating of 4 or 5. However, if a credit union is in conservatorship, it has a CAMEL rating of 4 or 5.

      Only if the credit union is closed, would balances above $250,000 be impacted.

      Delete
  3. Does the FDIC publish a list of CAMEL 4 or 5 banks? Neither federal agency should because it would cause issues with the institutions affect their business. Most likely lead to their demise as independent financial institutions.

    ReplyDelete