Monday, May 16, 2016

Metsger Calls for Review of Examination Process

National Credit Union Administration (NCUA) Chairman Rick Metsger has called for an extended examination cycle for well-managed, financially sound credit unions.

Currently, NCUA requires every federal credit union and all federally insured state-chartered credit unions with more than $250 million in assets to be examined every 12 months.

NCUA should follow the lead of the other federal banking regulators.

Earlier this year, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller Currency issued an interim final rule allowing qualifying well-capitalized and well-managed banks and savings associations with less than $1 billion in total assets may now be eligible for an 18-month examination cycle. The previous asset-size threshold for extended examination cycle was $500 million.

Institutions are considered to be well-capitalized and well-managed if they have a CAMELS composite rating of 1 or 2—the top ratings in the five-point scale indicating the safety and soundness of a bank or savings association.

Read the NCUA press release.

No comments:

Post a Comment


The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.