ARLINGTON, Va.–NAFCU has added its voice to those calling on NCUA to change its examination scheduling policy and to return to the 18-month exam cycle.
“NAFCU believes that an 18-month exam cycle for financially sound, well-managed institutions, as compared to a 12-month cycle, is one way to provide relief and help regulators control examination costs,” said NAFCU CEO Dan Berger in a letter, after praising the agency for its efforts around budget transparency.
Berger goes on to say, “Given that current risk to the NCUSIF and economic trends mirror 2001-2007, NAFCU and our members strongly urge the agency to implement an 18-month examination cycle.”
In its comment letter NAFCU suggests that NCUA allow federal credit unions determined to be “low risk” to receive no more than two exams in a three-year period. This approach would preserve the agency’s ability to address risk through requisite supervision and monitoring, but would streamline NCUA’s staff and resources for a more cost-effective budget, NAFCU said.