CUNA President/CEO Jim Nussle said the NCUA's announcement Thursday that it will review the examination process is very good news for credit unions. NCUA Chair Rick Metsger said in a speech to the Idaho Credit Union League that he would like to, within the next two months, remove the requirement that every federal credit union, and all federally insured, state-chartered credit unions with more than $250 million in assets, be examined each calendar year.
This step would be necessary before the agency could approve an extended exam cycle.
"Reducing the frequency of examinations for credit unions would remove some unnecessary pressure on credit union resources--resources that can better be used to serve members," Nussle said. "Such an action by the agency would also be both prudent and appropriate as it would refine the cycle to be more consistent with the examination cycle for banks.
"Reducing exam frequency is a top priority for CUNA. We have used our 360-degree advocacy approach, working with NCUA as well as federal lawmakers, to seek relief for credit unions on this issue. We thank Chairman Metsger for acting on this important issue just days after taking the reins of the agency," Nussle added.
Earlier this year, a CUNA survey revealed that exam duration was little-changed in 2015 (9.2 days), making it nearly identical to both the 2014 result (9 days) and the 2013 result (9.1 days) but a bit longer than that seen in 2012 (7.9 days).