The NCUA’s Exam Flexibility Initiative working group report is now available, and makes several CUNA-sought improvements to the examination process. Most notably, the report recommends an extended exam cycle for credit unions with assets under $1 billion with a January 2017 implementation date.
“We thank Chairman [Rick] Metsger for making exam relief an agency priority, and we encourage the board to approve the recommendations in the report. The extended exam cycle will provide most well-run credit unions some relief,” said CUNA President/CEO Jim Nussle. “Chairman Metsger is being aggressive with the timeframe, now saying changes could be instituted as early as January of next year, and flexible in the remedies he is considering.
“CUNA and credit unions have pushed for an extended examination cycle for a long time and we’re very glad to see the NCUA moving decisively on this issue. A victory like this can only be achieved by the diligent advocacy of the CUNA/league system, which has brought hundreds of federal and state-chartered credit unions to meet with NCUA staff and leadership to stress how important exam relief is to credit unions,” Nussle added.
CUNA suggested a number of short- and long-term examination improvements in its August comment letter on the Exam Flexibility Initiative. An extended examination cycle was one of the short-term goals CUNA presented to the NCUA.
The NCUA Board is scheduled to consider the working group’s recommendations as part of the agency’s 2017–2018 budget, scheduled to come before the board at its Nov. 17 open meeting.
The report also recommends for 2017:
According to the NCUA, it could make other changes as of July 1, 2017, including improvements in examination planning and the issuance of a post-exam survey, if the board approves those recommendations.