Removing Barriers Blog

NCUA Working Group Reports CUNA-Recommend Extended Exam Cycle to Board
Posted October 06, 2016 by CUNA Advocacy

Today, after coordinated and diligent advocacy by CUNA, the Leagues, and credit unions, the NCUA has made available their Exam Flexibility Initiative Report.  The report makes several recommendations to NCUA’s Board with January 2017 implementation dates also recommended.  Most notable, and a win for credit unions, is the CUNA-advocated recommendation of an extended exam cycle for credit unions with assets under $1 billion.  Also for 2017, the report recommends: 

  • Enhanced coordination of exams for federally insured, state-chartered credit unions; and  

  • Establishment of an NCUA and state supervisory working group. 

According to the report, NCUA’s Board will vote soon on whether to approve the recommendations for 2017. 

The report also contained information on other important initiatives that are ongoing to improve exams, which include: 

  • Enhancing planning and notice procedures; 

  • Reinstituting optional credit union survey; 

  • Reducing NCUA’s onsite presence at examination; and 

  • Improving consistency of examiner training. 

CUNA’s Examination and Supervision Committee and staff have strongly advocated for the changes recommended in the report and will continue to meet with NCUA leadership and staff to help ensure that all credit unions receive relief from the supervisory process.   

Once NCUA’s Board approves the extended exam cycle, most credit unions should start to experience real relief.  We commend NCUA for working with credit unions to improve and modernize the supervisory process and hope that progress will continue as NCUA works through many updates in software, training and process.