NCUA Board to Reduce Exam Frequency

The National Credit Union Administration Board decided last week to eliminate the calendar year examination requirement for federal credit unions and federally insured, state-chartered credit unions with more than $250 million in assets.

According to the NCUA Board Action Item, NCUA Regional Directors will have discretion to schedule exams of federal credit unions; however, the time between completion of the most recent exam and completion of the next exam cannot exceed 23 months. The outer bound of 23 months is consistent with existing agency policy of an 8 to 23 month examination cycle for all federally chartered credit unions.

For federally insured, state-chartered credit unions with assets above $250 million, Regional Directors will no longer be required to examine these institutions each calendar year. Instead, Regional Directors will select federally insured, state-chartered credit unions for examination during a particular calendar year based on various factors, including but not limited to the risk profile of the institution, emerging trends, the time elapsed since the last NCUA onsite work, and coordination needs with state supervisory authorities.

These two policy changes will be effective immediately.

Read the Board Action Item.