Credit, liquidity risk top NCUA’s 2024 supervisory priorities
NCUA issued a Letter to Credit Unions Monday outlining the agency’s supervisory priorities for 2024: credit risk, liquidity risk, consumer financial protection, information security, and interest rate risk. These represent the “areas posing the highest risk to credit union members, the credit union industry, and the National Credit Union Share Insurance Fund,” according to the agency.
NCUA Chairman Todd Harper noted the NCUA “observed growing signs of financial strain on credit union balance sheets” in 2023, adding, “inflation and interest rates are affecting household budgets, which could lead to an increase in credit risk in future quarters.”
Harper also indicated the NCUA will continue to conduct onsite and offsite examination and supervision activities, as appropriate, and the agency’s exam flexibility initiative will continue in 2024.
The NCUA will also continue its Small Credit Union Exam Program in most federal credit unions with assets of $50 million or less.
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