NCUA outlined its primary areas of supervisory focus in its first Letter to Credit Unions (19-CU-01) of 2019. The letter also contains information on full implementation of an extended exam cycle in 2019.
Agency examiners will continue using the streamlined small credit union exam program procedures for most credit unions that have assets under $50 million.
For all other credit unions, examiners will conduct risk-focused examinations, concentrating on the areas of highest risk, new products and services, and compliance with federal regulations.
In 2019, NCUA examiners will have increased flexibility to conduct suitable examination work offsite. In the agency’s Flexible Examination Program (FLEX) pilot, examiners were able to conduct as much as 35% of examination time offsite, according to NCUA.
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