NCUA Focus on Product Pricing and the Protection of the Insurance Fund

The 2008 financial crisis exposed significant vulnerabilities in the banking sector, particularly in how institutions priced their loan products. The crisis revealed that many financial institutions had underpriced their loans by failing to adequately account for the various risks, especially interest rate risk. This mispricing not only led to substantial losses for individual institutions but also created systemic risks that threatened the stability of the entire financial system.