Compliance: NCUA provides exam modernization updates
NCUA’s latest letter to credit unions (18-CU-01) provides an update on five Examination Modernization Initiatives designed to improve and modernize how the agency conducts examination and supervision.
The NCUA board approved five initiatives to modernize agency examinations: the Flexible Examination Pilot Program (FLEX); Office of National Examinations and Supervision (ONES) Data Driven Supervision; the Shared NCUA-State Regulator Federally Insured, State-Chartered Credit Union (FISCU) Program; the Enterprise Solution Modernization Program (ESM); and the Virtual Examination Program.
FLEX is evaluating conducting offsite certain existing exam procedures. In 2017, the NCUA tested the pilot with five examiner groups in 28 credit unions located in a variety of geographical locations.
Preliminary results from the pilot show costs savings to the NCUA, realized in part by reducing travel time and costs for examiners. In designated reviews, over 35%
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