The NCUA promised enhanced examination planning procedures and scheduling changes for 2017, and outlined those changes in a letter to credit union (16-CU-12) sent in the final days of 2016. The extended examination cycle applies to federal credit unions and federally insured state-chartered credit unions that meet certain eligibility requirements.
For federal credit unions, an extended examination cycle will begin between 14 and 20 months from the prior examination completion date, as long as the credit union meets all 5 five eligibility requirements.
Those requirements are:
Examinations will occur between 8 and 12 months from the prior examination completion date for federal credit unions that do not meet all of the requirements.
According to the NCUA, it anticipates a full transition to the extended examination cycle within the next 2 years.
Federally insured state-chartered credit unions meeting any one of the following criteria will receive NCUA exams that will begin between 8 and 12 months from the prior examination completion date:
All other federally insured state-chartered credit unions will receive an NCUA examination based on risk, but no less frequently than once every five years.
The NCUA will implement the following improvements to examination procedures in 2017: