ALEXANDRIA, Va. (11/20/15)--National Credit Union Administration (NCUA) Chair Debbie Matz, during open board meeting discussion of the agency's 2016-2017 annual performance plan, indicated that the federal regulator may return to an 18-month examination cycle in the future.
The elongated schedule would be allowed only for well-performing credit unions, she said, and advised the change would not be coming in 2016. Even a one-year delay would allow some of the agency's regulatory relief programs to take effect, and would give the agency time to make necessary technology upgrades, she noted.
CUNA President/CEO Jim Nussle thanked the NCUA chair for her leadership on the exam cycle issue.
“We were very pleased to hear Chairman Matz say what we have been urging in meetings and our comment letter: that the agency should use efficiencies and analytics to reduce the examination frequency for well-managed credit unions." Nussle added that CUNA looks forward to the agency implementing the extension.
The NCUA adopted a one-year exam cycle in response to the country's economic upheaval caused by the mortgage market meltdown that started in earnest in 2007.
The NCUA's two-year performance plan, adopted by the board, designates the following performance goals as priorities: