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.
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