Removing Barriers Blog

Metsger Comments on Extended Exam Cycle
Posted May 12, 2016 by CUNA Advocacy

It appears that a win on extended exam cycle might be closer than we thought.  Today in a speech to the Idaho Credit Union League, Chairman Metzger stated that he is initiating a review of the agency's examination process, including the frequency of examinations, and will form a working group to bring all stakeholders into that effort.

"To begin this process," Metsger said, "we must first remove the requirement that every federal credit union, and all federally insured, state-chartered credit unions with more than $250 million in assets, be examined each calendar year. This prescriptive requirement creates a logjam of exams at the end of each year, which is neither effective nor efficient."

Metzger said the goal is to remove the annual exam requirement within the next two months.  What this means is that the NCUA will be moving forward on the process to implement an extended exam cycle for credit unions.  We do not have all of the details, but this is a major shift as it shows that the Board is now supporting a move to the extended exam cycle.  This is a great first step for the Metzger regime at NCUA.

We still have a lot of work to do to make sure that credit unions feel real relief from what can be onerous supervisory processes. The Leagues and CUNA’s  Examination and Supervision Subcommittee have been instrumental in pushing NCUA on this and other important issues.  We have to continue to push the agency to ensure that credit unions can maximize the impact of this opportunity.  

Our staff have had several meetings with NCUA leadership scheduled over the next few weeks.  We will press staff to make sure that the extended exam cycle results in real and meaningful relief.

NCUA’s statement can be found here.