NCUA exam improvements a good sign for credit unions
The National Credit Union Administration’s recent announcement that its examination processes will be streamlined and improved starting in 2014 “indicates an effort toward a better process for addressing problem examination issues,” Credit Union National Association President/CEO Bill Cheney wrote in this week’s Cheney Report.
The NCUA’s planned improvements, which include setting clear expectations for credit unions and examiners regarding the use of Documents of Resolution (DoRs) and other areas, “reflect a number of recommendations that CUNA has been making for some time,” Cheney noted.
Of course, the CUNA leader made it clear, “there is still a lot of room for improvement.” CUNA has long advocated changes to some exam practices. For example, in the 2011 “Credit Union Exam Bill of Rights,” CUNA said if a credit union disagrees with a DoR from its examiner, the credit union should be able to contact the regional director to discuss concerns.
Overall, Cheney stressed, the success of these exam changes “will be in actions taken, including whether or not examiners correctly interpret information provided by credit unions.”
He added that CUNA will follow up with the NCUA on these and other exam issues.
CUNA and state credit union leagues later this year will conduct an annual National Examination Survey. Credit unions will be asked to describe the strengths and weaknesses of their state and federal regulatory examination experiences. The results of the survey will be used as CUNA and the leagues hone their exam issue advocacy efforts, Cheney wrote.
This week’s edition of The Cheney Report also details:
- CUNA media outreach on debt ceiling issues;
- A tax reform update;
- A preview of the ‘Rock Stars’ issue of Credit Union Magazine; and
- A call for credit unions to tap the power of their members to rebuff bank attacks.