ARLINGTON, Va. – The National Association of State Credit Union Supervisors (NASCUS) has written a comment letter in which it expresses support for the agency’s plans to use technology in the examination and supervision process.
The letter was sent in response to NCUA’s request for Request for Information (RFI) on Strategies for Future Examination and Supervision Utilizing Digital Technologies.
In its letter NASCUS said by better using technology NCUA could reduce burden on federally insured credit unions, enhance the agency’s cooperative supervisory relationship with its state regulatory peers, and generate costs savings to the National Credit Union Share Insurance Fund (NCUSIF).
“We support this initiative without reservation and note that many state regulatory agencies had also been moving to reconfigure examination and supervision programs to maximize the utility of off-site supervision and examination work prior to the pandemic,” wrote NASCUS Executive Vice President and General Counsel Brian Knight.
“The implementation of an offsite examination program for NCUA will differ between federal credit unions (FCUs) and federally insured state credit unions (FISCUs),” Knight continued.
‘Of Critical Importance’
For federally insured, state-chartered credit unions, NASCUS reminded NCUA performs insurance reviews rather than full scope examinations, and primarily relies on Reports of Examination (ROE) issued by state regulatory agencies.
“It will be of critical importance to the success of an offsite examination program for FISCUs that NCUA continue to rely, to the fullest extent, on examinations conducted by state regulators, the NASCUS letter states. “To do otherwise would be to negate any benefit of reduced burden on FISCUs from offsite examination.
“NASCUS looks forward to working with NCUA to tailor the agency’s offsite examination program to its insurance reviews of state-chartered credit unions and cooperative working relationships with state credit union regulators,” the letter concludes.