ARLINGTON, Va.—The median length of NCUA exams increased to 14 days – potentially due to coronavirus-related disruption to operations or the piloting of the agency’s new Modern Exam and Risk Identification Tool (MERIT), a new analysis reveals.
The November edition of NAFCU's Economic & CU Monitor also shows that overall, credit unions have mixed feelings regarding the NCUA's adoption of virtual examination procedures.
In addition, the vast majority of respondents to the Monitor survey indicated they were optimistic about MERIT’s potential impact on exam efficiency, but noted concerns related to IT requirements and the prospect of greater data collection burdens.
As CUToday.info reported earlier, NCUA in August issued a request for information (RFI) on its exam modernization efforts.
Increased Optimism
Also included in the latest Economic & CU Monitor are results from the Credit Union Sentiment Index (CUSI), an index based on NAFCU member responses to eight questions on growth and earnings outlook, lending conditions and regulatory burden.
The CUSI improved this month to reach its highest reading since February of this year, as all four index components increased. The index is now “comfortably above 50,” which is the threshold dividing optimistic outlooks from pessimistic ones.
NAFCU’s research team noted a large rise in the growth component, with respondents citing economic conditions or loan demand as reasons for an optimistic outlook on growth.