ALEXANDRIA, Va.–NCUA has released its 2016 Annual Report, highlighting the agency’s activities, policy initiatives and accomplishments for 2016.
“By nearly every measure, the credit union system continued to perform well in 2016,” Acting NCUA Board Chairman J. Mark McWatters said. “While credit unions concentrated on serving the needs of their members, NCUA focused on improving the agency’s rules, procedures and processes. Notably, we finalized rules to expand consumer access to credit and provide regulatory relief for credit unions, consistent with the principles of safety and soundness.
“Looking to the year ahead, NCUA plans to advance meaningful regulatory relief for credit unions, improve our examiner training, explore ways to improve the examination appeals process and study how the agency can address fraud at credit unions, among other areas,” McWatters added. “We will also continue to collaborate with stakeholders to ensure federally insured credit unions are able to meet the current and future financial needs of America’s families and small businesses.”
In 2016, NCUA said it engaged in number of rulemakings and initiatives designed to provide federally insured credit unions with measures of regulatory relief.
Among its most “significant actions,” according to the agency:
- Removing arbitrary, artificial and unnecessary barriers to credit union growth through the modernization of member business lending, field-of-membership and occupancy rules;
- Approving the implementation of an extended examination cycle for well-managed, low-risk federal credit unions with assets of less than $1 billion;
- Removing the requirement that all federally insured, state-chartered credit unions with more than $250 million in assets and every federal credit union be examined each calendar year; and
- Beginning the process of modernizing the Call Report and examination systems, which will ultimately reduce the examination and reporting burdens for credit unions, especially for smaller, non-complex credit unions.
During 2016, the agency said it focused on:
- Improving our efficiency and effectiveness;
- Ensuring a safe, sound and sustainable credit union system;
- Promoting consumer protection and financial literacy;
- Developing a regulatory environment that is transparent and effective, with clearly articulated and easily understood regulations; and
- Cultivating an environment that fosters a diverse, well-trained and motivated staff.