WASHINGTON (2/8/12)--Credit Union National Association (CUNA) President/CEO Bill Cheney has urged the National Credit Union Administration (NCUA) to meet with the North Carolina Credit Union Division "as soon as possible" to resolve differences regarding disclosure of a credit union's CAMEL rating and the use of dual exams.
Raleigh, N.C.-based State Employees' CU got authorization from its state regulator and disclosed its state-issued CAMEL score earlier this year, but the NCUA has disputed the disclosure of the credit union's CAMEL rating. The CAMEL rating system is NCUA's method of evaluating the health of credit unions. The rating, adopted by the NCUA in 1987, is based upon five critical elements of a credit union's operations: (C) Capital, (A) Asset quality, (M) Management, (E) Earnings and (L) Asset liability management.
The NCUA treats all CAMEL ratings as confidential information, and does not approve of these ratings being released to the public.
As a result of a recent CAMEL rating release, the NCUA has discontinued its coordinated examinations with the NCCUD, opting instead to begin separate exams for state-chartered federally insured credit unions in the state, over the next four weeks. The NCUA said the dual exams are needed to protect the National Credit Union Share Insurance Fund and the credit union system.
In other states, the NCUA routinely conducts joint safety and soundness examinations with the state regulator.
"No viable credit union in any state should be disadvantaged by the actions of a regulator, and subjecting state chartered credit unions to dual examinations simply because there is a dispute between the state and federal regulators is not a viable long term solution," Cheney said.
The North Carolina Credit Union League has talked extensively with NCUA officials on this issue and organized meetings of that state's credit unions. The League has also called for the NCUA and NCCUD to meet on the issue in a letter released this week, and CUNA plans to work with all three parties as well.