ALEXANDRIA, Va. (9/24/14)--With sights set on reducing regulatory burden on credit unions, the National Credit Union Administration began its Regulatory Modernization Initiative three years ago. While the agency has touted a number of positive changes since the initiative began, the Credit Union National Association continues to advocate for additional measures to relieve regulatory burdens.
The primary principle guiding the Regulatory Modernization Initiative was to provide regulatory relief, along with greater flexibility without jeopardizing safety and soundness or consumer protections, according to the agency.
NCUA Chair Debbie Matz said she is committed to "ensure that credit unions have a prudent, forward-looking regulatory framework sufficient to address emerging risks."
CUNA continues to work with its Examination and Supervision Committee to ensure the initiative moves forward with its purpose of reducing burdensome regulations, including advocating for the NCUA to continue to focus its examination priorities on riskier financial institutions.
Some key results include amending its policy on Troubled Debt Restructuring in response to feedback, and creating an expedited exam process for well-managed credit unions with CAMEL ratings of 1, 2 or 3 and assets of less than $30 million, according to the NCUA.
Matz said the board will continue to look for ways to provide more flexibility to credit unions offering member business loans and proposing changes to advertising rules to incorporate new technology, such as social media.
CUNA's examinations survey is still active, and the trade association encourages credit unions to take the survey and submit their feedback on the NCUA's examination process.
Use the resource link below to access the CUNA's examination survey.