Tuesday, June 14, 2016

NCUA Tells Chairman Hensarling to Keep Exam Cycle Flexibility

In a June 8th letter to House Financial Services Committee Chairman Jeb Hensarling (R -TX), National Credit Union Administration (NCUA) Chairman Rick Metsger wrote that "[n]ow that the economy and the credit union system have stabilized, I believe that the NCUA board should act thoughtfully and promptly to modify the exam cycle."

In the letter, the agency stated that it would prefer to adjust the examination cycle by regulation.

However, Metsger was opposed to statutory changes that hard code the exam cycle into law. Metsger believes such legislation could limit the agency's flexibility to respond to the next financial crisis and increase losses to the National Credit Union Share Insurance Fund.

On a related note, on June 9th, Rep. Guinta (R - NH) introduced a bill (H.R. 5419) to amend the Federal Credit Union Act to extend the examination cycle of the NCUA to 18 months for certain credit unions

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1 comment:

  1. AnonymousJune 14, 2016 at 9:09 AM

    Chairman Hensarling and Chairman Metsger,
    Maybe you 2 can I have a discussion about NCUA reporting.
    You see, we find it a bit odd that the new Chaiman Metsger wants full authority to decide anything.
    The reason is, among MANY other things, the agency cannot even get reporting correctly. Or, is it poor supervision.
    How are there zero CAMEL 5 credit unions with assets greater than $1B when even a cursory look at Melrose call report screams "5".
    Can you explain that?
    Is this bad reporting by the CU?
    Poor supervision by examiners?
    Leniency (forbearance) by the agency?
    Or something else?
    Chairman Hensarling, is it you not doing your job?
    We are looking for the truth because if we need to plan for assessments, we would like to know before they're assessed.

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