WASHINGTON – During one of the GAC breakout sessions, NCUA staff outlined where the agency is at regarding extending the examination cycle.
- It may take two years for the NCUA to fully transition qualifying credit unions to the extended exam cycle, so there may be instances where NCUA schedules exams that aren’t following the extended cycle. NCUA will notify credit unions approximately four weeks in advance of the examination;
- Small federal credit unions with limited segregation of duties that would otherwise qualify for an extended examination cycle, may be examined more frequently. A limited segregation of duties was listed as a supervisory concern and an area of focus for 2017;
- For federal credit unions between $30 million and $50 million in assets, coded CAMEL 1, 2, or 3, it is up to the discretion of the NCUA region to determine if the examination will follow the procedures used for the small credit union examination program;
- There’s a pilot program underway in Region 4 to reduce NCUA’s presence on-site. Region 4 consists of Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Oklahoma South Dakota, Texas and Wyoming;
- NCUA will try to conduct federally insured state-chartered credit union examinations with the appropriate state supervisory authority. If NCUA is unable to schedule a joint exam, then NCUA will conduct an independent insurance review; and
- NCUA has established its working group with state regulators.
in Compliance & Regulatory News