Yesterday, following a vote of 2-0, the NCUA board approved its 2017-2021 strategic plan and in doing so highlighted its commitment to reducing the regulatory burden on CUs and possibly extending the exam cycle for well-run CUs. The new plan includes removing the calendar-year exam requirement.
In adopting the plan, the board removed two agency performance goals requiring the examination each calendar year for all federally insured, state-chartered credit unions with more than $250 million in assets and every federal credit union. The board then established an interim goal of completing an efficient and effective federal and state examination process through the end of this year.
Board Chairman Rick Metsger noted that it is likely some exams scheduled for the end of the year will get pushed into Q1 2017 to not only reduce the year-end burden on CUs but examiners as well.
“Whether to change the exam cycle will be determined by the board after it receives recommendations from our Examination Flexibility initiative this fall,” said Metsger. “But this does give regions the ability to prioritize examinations based on risk and resources and not based on the calendar.
Metsger added that year-end exam schedules will be reviewed case-by-case. Read more CU Times