Business loan participations are an excellent way to diversify your portfolio, increase yields and manage the balance sheet. Participations also carry significant risk, especially in today’s economic environment. Because of increasing volumes of participations, the NCUA recently issued Letter Number 08-CU-26 which provides guidance to credit unions and examiners on running a successful participation program. Business Lending 204 will outline major aspects of these new regulations and the action steps needed for credit
unions to comply.
Specific topics include:
- Examiner definition of participation risks for both buying and selling credit unions
- What credit unions need to state in their MBL and participation policies
- Due diligence required in running a business loan participation program
- Risk measurement, monitoring and control for participation transactions
CU Business Group experts will also provide an overview of how the CUBG participation network complies with
these regulations. This information is essential for credit unions currently buying or selling participations, or those considering it.
Length: 15 minutes