Exam working group to report to NCUA within 120 days

May 19, 2016

The NCUA’s working group on changes to the agency’s examination cycle will report to the board in 90 to 120 days with recommendations regarding an extended examination cycle. The working group will be chaired by current Region 4 Director Keith Morton, NCUA Chair Rick Metsger announced at Thursday’s NCUA board meeting.

“NCUA’s call report discussion at today's board meeting was a breath of fresh air. NCUA signaled they are serious about examination reform by assigning a regional director full time to the internal working group,” said Elizabeth Eurgubian, CUNA deputy chief advocacy officer. “As CUNA and our state leagues have long advocated, the agency is looking to rethink examinations and supervision by using technology to transform the entire process. The agency is to be commended for this forward looking approach."

The meeting featured no action items for the board, but did have what Metsger said will be the first of several board briefings on light agenda days. The topic of this one was call report modernization.

“We are beginning our modernization effort with a fresh look at the tools we use to collect financial and nonfinancial data from credit unions, the call report and profile,” said Larry Fazio, director of the NCUA’s Office of Examination and Supervision. “Our goals are enhancing the value of the data we collect for offsite monitoring and pre-exam planning, improving the experience of users of our system and reducing the reporting burden for credit unions when possible and appropriate.”

Modernizing the call report system will include improvements to AIRES and CU Online, as well as other data systems Metsger called “antiquated.”

This modernization will be a multifaceted approach from the NCUA, which will include:

  • Issuing a request for information for public input on how call reports might be changed. The request will have a 60-day comment period, and will include specific questions from the NCUA;
  • Creating a user focus group that will include credit unions and state supervisory authorities; and
  • Soliciting volunteers, including trade groups, vendors and credit unions, to provide input.

Starting with this year’s second quarter call report, the NCUA expects to provide some relief on the number of days needed to file a call report. This will be done with an eye toward moving the call report deadline to the end of the month for first quarter 2017 call reports, making the deadline similar to other banking agencies.

In July, the board anticipates reviewing its draft strategic plan, at which time it will consider removing the annual examination requirement from its policy.