Removing Barriers Blog

Washington State CU Regulator Issues New Bulletins
Posted September 27, 2016 by CUNA Advocacy

Recently, the Washington State Department of Financial Institutions (DFI) released two Department of Credit Union (DCU) bulletins that significantly impact the operation of state chartered credit unions.

In DCU Bulletin B-16-13, DFI temporarily suspends member business lending rulemaking for Washington’s state chartered credit unions. The suspension is pending the outcome of the complaint filed by the Independent and Community Bankers Association (ICBA) against the National Credit Union Administration (NCUA).

With DCU Bulletin B-16-14, DFI adds reviews of state chartered credit unions’ electronic payments systems (EPS) to safety and soundness examinations in 2017. Regulated credit unions with over $250 million in total assets will be subject to the new examinations. While no separate EPS rating will be given, the “management” component rating of CAMELS could be adjusted up or down based on the EPS examination.

EPS examiners will focus their reviews on the following:

  • EPS risk assessments;
  • EPS audits (both external and internal);
  • EPS policy and procedures; and
  • EPS limits and controls that are in place.

Additionally, examiners will concentrate on new EPS services and the credit unions’ internal controls, limits and processes in place to minimize and reduce risks.

The Northwest Credit Union Association anticipates DFI credit union regulations in the coming weeks.