ALEXANDRIA, Va. –NCUA has introduced a new effort it said is aimed at modernizing the agency’s examination and supervision program. “NCUA has begun a multi-pronged outreach effort to collect experiences and ideas from credit union system stakeholders through the Exam Flexibility Initiative,” the agency said. “This initiative will include meetings and teleconferences, and the agency has already opened an email account for credit unions to provide comments, ExamFlexibility@ncua.gov.”
It has also created a website, which can be found here.
“We are committed to continual quality improvement and, in particular, to modernizing the examination process, the agency’s largest function,” NCUA Board Chairman Rick Metsger said. “More than 102-million account-holders trust us to protect their hard-earned money, so our program needs to continue to be as effective as we can make it, but it also needs to be efficient for credit unions. I’m looking forward to a thoughtful dialog with stakeholders on how we can improve this program, place fewer burdens on credit unions and protect members’ deposits.”
Metsger had earlier announced that NCUA would begin reviewing the examination process, including the frequency of examinations, through the establishment of an internal working group, which will include representatives from all five of the agency’s regional offices and its central office. Region IV Director Keith Morton is leading the effort.
As part of the new initiative, NCUA has presented five questions for credit unions to consider to help stimulate this discussion:
- How can NCUA conduct future examinations in ways that minimize their impact on credit unions’ operations?
- What concerns do credit unions have about the current examination and supervision program?
- What steps should NCUA take to improve the efficiency of its examination program while ensuring it remains effective?
- How can NCUA better use technology in examinations?
- What metrics should NCUA consider to determine a credit union’s eligibility for an extended examination cycle?
Metsger has said he wants to make changes to the examination process “sooner rather than later.”