Removing Barriers Blog

NCUA Board Meeting Summary- May 19, 2016
Posted May 19, 2016 by CUNA Advocacy

At today's public meeting, the NCUA Board received a report of the Corporate Stabilization Fund and received a Board Briefing on Call Report Modernization.  There were no action items for the Board to consider, only a report and the newly announced procedure of a Board Briefing which will allow board members to discuss an item in a publicly noticed meeting without any action taken by the Board.  NCUA indicates it expects more Board Briefings in the future.  This was the first meeting with Chairman Rick Metsger at the helm and only two sitting board members, due to the resignation of Debbie Matz.

Corporate Stabilization Fund, Quarterly Report.

Rendell L. Jones, chief Financial Officer presented the Corporate Stabilization Fund Quarterly Report.  Jones indicated a payment of $700 million is scheduled for May 27th which will bring the total amount of borrowings from U.S. Treasury to $1 billion.  Total income for the Fund was at $11.2 million with Net Income at $78.2 million.  Total Liabilities and Net Position was at $2.324 billion for quarter ending March 31, 2016 up from $2.244 billion ending December 31, 2015.

Board Briefing, Call Report Modernization.

Although no action was taken during this discussion several topics were discussed by the Board and presenter Larry Fazio.  Highlights of the discussion are as follows:

  • NCUA is moving forward with a process to modernize the Call Report System as part of the Enterprise Solutions Modernization Program.  This includes upgrades/enhancements to the CU Online and ARIES systems and other Data systems which are currently antiquated.

  • These changes will be comprehensive and complex and will affect the exam process.  Ideally the changes will improve the exam experience and call reporting for users and enhance the oversight and usefulness of data by the NCUA.  NCUA looks to tailoring requirements to asset size and complexity.

  • To implement the changes will include a multi-faceted approach that will include the following:

    • Request For Information (RFI) with a 60 day comment period published in the Federal Register for public input on how call reports might be changed.  It will include questions by the agency.
    • User focus group that will include credit unions and State Supervisory Authorities.
    • NCUA will solicit volunteers including trade groups and vendors, and credit unions to provide input.

  • Commencing with the 2nd quarter call report, NCUA expects to provide some modest relief on the number of days needed to file a call report. This change is expected by the 1st Quarter of 2017, and would move the call report deadline to the end of the month, similar to other banking agencies.

  • Chairman Metsger indicated Keith Morton from Region IV would be heading the internal working group (which eventually will reach out to external groups) for purposes of reporting to the board in 90-120 days recommendations of achieving an extended exam cycle that can be implemented by the Board by the end of the year.

  • In July, the Board anticipates reviewing the strategic plan at which time it will consider removing the “annual” requirement from its policy.