Removing Barriers Blog

Extended Exam Cycle Possible, But Not Until After 2017
Posted March 11, 2016 by CUNA Advocacy

NCUA Chairman Debbie Matz responded to a February letter signed by more than two dozen U.S. House members, from both parties, urging the agency to extend its examination cycle for certain credit unions.   In the letter, Chairman Matz told the lawmakers that the NCUA will be in a better position to consider an extended examination cycle once new processes and procedures are in place by the end of 2017.

Chairman Matz is referring to NCUA’s current initiative to overhaul the Call Report and AIRES exam software.  NCUA has told CUNA staff that the agency hopes to make both the Call Report and AIRES exam software more efficient.  These proposed improvements, in conjunction with an extended exam cycle, should give credit unions needed operational relief from NCUA’s supervision process.  CUNA and its members, working through the Examination and Supervision Subcommittee, continue to press NCUA to make the supervision process more efficient by providing input on these initiatives and pushing NCUA staff to move forward as quickly as possible.  Although NCUA might not be able to fully implement an extended exam cycle before 2018, we hope to have a commitment to do so from NCUA well before 2018.