Guinta proposes 18-month NCUA exam cycle for credit unions

NCUA would be required to establish an exam cycle of at least 18 months for well-run credit unions having assets of $1 billion or less under legislation introduced Thursday by Rep. Frank Guinta, R-N.H.

Guinta’s H.R. 5419, the “Credit Union Examination Reform Act of 2016,” would not preclude NCUA from establishing an 18-month exam cycle for all credit unions, regardless of asset size. Meanwhile, the bill would leave the agency flexibility to use a shorter cycle for credit unions based on safety-and-soundness concerns.

NCUA would have 100 days after the bill’s enactment to implement the measure.

Guinta offered the bill one day after NCUA Board Chairman Rick Metsger wrote Guinta, a member of the House Financial Services Committee, about his own broad goals for extended exam cycles.

continue reading »