ALEXANDRIA, Va.—NCUA is being urged to extend the 18-month examination cycle to low-risk, well-run credit unions greater than $1 billion in assets.
"Such action would not only provide relief to more credit unions but also assist the agency in its efforts to increase efficacy and efficiency within the agency's operations and budget," wrote NAFCU Director of Regulatory Affairs Alexander Monterrubio in a letter to NCUA Chairman J. Mark McWatters and Board Member Rick Metsger.
NCUA extended its exam cycles for credit unions with less than $1 billion in assets, effective Jan. 1, 2017. Monterrubio pointed out that the NCUA partly set this threshold to maintain consistency with those set by the FDIC, Office of the Comptroller of the Currency and the Federal Reserve Board. However, the Small Bank Exam Cycle Improvement Act (HR 5076) introduced by Rep. Claudia Tenney (R-NY) would seek to raise the 18-month exam threshold for banks from $1 billion to $3 billion in assets.
Tenney, during a House Financial Services Committee mark-up last week, called on the NCUA to consider parity and extend its exam cycle for similar-sized credit unions. The bill awaits action by the full House.
The legislation is also included in the Economic Growth, Regulatory Relief, and Consumer Protection Act (S 2155), which passed the Senate earlier this month and is awaiting House action.
"The NCUA Board has expended substantial effort to mitigate examination burden and proactively sought methods to improve the examination process," Monterrubio concluded. "However, in order to maintain competitiveness with banks, NAFCU urges NCUA to consider implementing an extended exam cycle that provides credit unions with comparable flexibility and increased cost-savings."