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NCUANonrulemakingNCUA-2023-0045

Climate-related Financial Risk

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Cooperative Credit Union Association filings
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Cooperative Credit Union Association filed 1 comment on this docket between Jun 27, 2023 and Jun 27, 2023. 19 other organizations filed here. The comment window closed 1128d ago.

What Cooperative Credit Union Association filed (1)

Jun 27, 2023· Comment from Cooperative Credit Union Association· NCUA-2023-0045-0032

•Climate-related risks—such as damage from storms in coastal or mountain areas—have always been a significant concern to credit unions in Delaware, Massachusetts, New Hampshire, and Rhode Island. The Great Hurricane of 1938, for example, caused a storm surge of 18-25 feet in Rhode Island and southeastern Massachusetts. Best practices on climate-related financial risks should be integrated into NCUA's general risk-management guidance instead of being developed separately. •The Federal Credit Union Act requires FICUs with more than $10 million in assets to follow Generally Accepted Accounting Principles (GAAP). Under GAAP, general risk reserves are not permitted, and future losses from climate-related events are not usually recognized because their chances are remote and liabilities cannot be reliably estimated. NCUA guidance on climate-related financial risks should be consistent with GAAP.

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Co-filers (19)

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