Credit Unions: Proposed Reforms for Corporate Credit Union Regulation
(Testimony, 03/08/95, GAO/T-GGD-95-115).

GAO discussed proposed regulations for corporate credit unions. GAO
noted that these revised regulations: (1) must go through a number of
steps before they become final; (2) will have the desired impact only if
the National Credit Union Administration vigorously enforces them; (3)
narrow the financial risks that corporate credit unions can undertake;
(4) require corporate credit unions to build a stronger capital base;
(5) include more stringent requirements for stress testing and
accounting for risky investments; (6) require that corporate credit
unions sell investments when unrealized investment losses exceed
one-half of primary capital; (7) require large corporate credit unions
to establish an internal audit function and emphasize that board members
oversee corporate management; and (8) may result in refocusing the
mission of corporate credit unions.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-GGD-95-115
     TITLE:  Credit Unions: Proposed Reforms for Corporate Credit Union 
             Regulation
      DATE:  03/08/95
   SUBJECT:  Credit unions
             Banking regulation
             Risk management
             Investments
             Capital
             Losses
             Financial management
             Financial institutions
             Corporations

             
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