NCUA Exam Group Suggests 10 Changes to Improve Exam Process Posted by AVCU on 12:48 PM

Well-managed, low-risk federal credit unions with assets of less than $1 billion could move to an extended examination cycle beginning next year, pending approval by the NCUA Board. That's one of 10 recommendations that NCUA's Exam Flexibility Initiative working group included in a report now available.

NCUA Board Chairman Rick Metsger said:

NCUA is committed to improving operations, responding to change, and finding ways to meet the needs of the credit unions we regulate while protecting the members whose money we insure.  We want to be more efficient and more effective while always putting safety and soundness first. We launched this initiative last May as part of the continual quality improvement program, and the working group has been diligent about gathering information and suggestions from credit union stakeholders throughout the process. I am looking forward to discussing the working group’s recommendations at our next Board meeting.

The NCUA Board is scheduled to consider the working group’s recommendations as part of the agency’s 2017–2018 budget, scheduled to come before the Board at its 11/17 open meeting.
With Board approval, the following recommendations would become effective 1/1/17:

• An extended exam cycle for well-managed, lower risk federal credit unions;
• Enhanced examinations of small federal credit unions;
• Enhanced coordination of exams for federally insured, state-chartered credit unions; and
• Establishment of an NCUA and state supervisor working group.

NCUA could make other changes as of July 1, 2017, including improvements in examination planning and the issuance of a post-exam survey, if the Board approves those recommendations.