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NCUA Board briefed on cybersecurity and CLF
The NCUA Board met Thursday to receive two briefings, one on cybersecurity and another on the Central Liquidity Facility (CLF). In addition, the board unanimously approved the NCUA Risk Appetite Statement, which outlines the variety of risks related to the agency’s objectives, strategies, operations, reputation, and environment.
In addition, the Risk Appetite Statement articulates the agency’s risk appetite level for several risk categories as established by the NCUA’s Enterprise Risk Management Council.
Regarding cybersecurity, NCUA staff briefed the board on the cybersecurity threat landscape, including the risks posed by ongoing geopolitical issues, specific threats from ransomware and cloud migration, evolving distributed denial of service attacks, and cryptocurrency and decentralized finance risks.
Staff and NCUA Board Members also discussed the recent proposed rule on cyber incident reporting, which NAFCU generally supported but offered several recommendations to reduce administrative reporting burdens and uncertainty for credit unions.
On the CLF, NCUA staff discussed the membership requirements, the agency’s regulations for liquidity and contingency funding plans, and the circumstances under which credit unions may borrow and seek advances from the CLF to meet their liquidity needs.
As of September 30, the CLF had total assets of $1.243 billion, borrowing authority of $29.1 billion, and 3,991 total members. During the briefing, NCUA Board Chairman Todd Harper highlighted the liquidity issues, amplified by inflation pressures, that many credit unions are facing and are likely to face in the near future.
NAFCU has recently called on Congress to make these CLF enhancements permanent and supports the Central Liquidity Facility Enhancement Act.
Stay tuned to NAFCU Today for the latest on the NCUA.