(June 16, 2014) -- NAFCU’s June Economic & CU Monitor, which includes results of a special topic survey on credit unions’ experiences with National Credit Union Administration (NCUA) examinations. Economic data and credit unions’ financial condition are also addressed. The survey compared credit unions’ exam experiences against the expectations set out in NCUA’s Letter to Credit Unions 14-CU-02, which identifies issues and risks NCUA will focus on during the coming year and the agency’s stated goal to streamline the exam process.
Here are some highlights from our survey:
- A majority of credit union respondents (92.3 percent) are updating their procedures in response to a recent NCUA exam.
- Survey respondents reported that of the items outlined in NCUA’s Letter to CUs, interest rate risk (75 percent) and cybersecurity threats (53.6 percent) were the most concerning.
- Regarding supervisory issues related to safety and soundness, 56 percent of respondents said that asset/liability management was the greatest area of focus on their most recent exam, followed by credit risk management (40 percent) and member business loans (20 percent).
- Highlighting the need for an independent appeals process, 41.7 percent of survey respondents said they would be more likely to appeal the results of their last examination if such an impartial system were in place.
- When asked how their most recent exam experience compared to previous ones overall, 14.7 percent of respondents said that it was better, an equal number said it was worse, and the remainder of respondents reported seeing no change.