NCUA Flags New Credit Union Reg Tools, Exam Improvements

National Credit Union Administration (NCUA) efforts to provide meaningful improvements to examinations and reduce regulatory burdens on credit unions are welcome, Credit Union National Association (CUNA) Deputy General Counsel Mary Dunn said Tuesday.

In the January edition of The NCUA Report, Chairman Debbie Matz said, “The agency continues to study the examination program carefully, looking for ways to…ultimately reduce burdens on credit unions wherever we can, consistent with safety and soundness.”

Dunn noted that efforts to relieve burdens and improve exams are consistent with CUNA’s 2013 Regulatory Advocacy strategy. CUNA knows that a number of credit unions have continuing concerns about examinations, she added. “That’s why we developed our national exam survey, and will also work throughout the year with our Examination and Supervision Subcommittee to gauge credit unions’ reactions to NCUA improvements.”

Chairman Matz said the NCUA board in 2013 will also explore the creation of additional regulatory tools to give credit unions more capacity to manage risk, like the use of derivatives to hedge interest rate risk, a move that CUNA strongly supports.

The NCUA Report article also said the agency is developing better training and guidance in several areas. Pre-exam letters will communicate additional information about the exam process, and exam report cover letters will outline exam appeal options that are available to credit unions.

The NCUA chairman also previewed areas that agency examiners will emphasize in 2013, including:

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