NCUA program upgrades could help prepare for extended exam cycle

The National Credit Union Administration (NCUA) approved two temporary management positions Thursday to beef up its Enterprise Solutions Modernization (ESM) program, a program agency staff believes could help lead to a longer examination cycle.

John Kutchey, NCUA’s deputy executive director, said the changes will make an extended examination more feasible, but added that the decision to extend the cycle rests solely with the board.

In its action Thursday, the board authorized $75,000 to be provided annually for the next four years for the two positions. The agency emphasized that the action will not lead to a net staff increase, as the NCUA will eliminate two full-time positions to offset the new expense.

The NCUA is predominantly funded by the credit unions it oversees, and those credit union funds ultimately represent their members’ monies. The Credit Union National Association (CUNA) has long advocated for the NCUA to seek ways to contain and reduce its budget, particularly with the credit union system being very healthy.

“We’re glad to see the NCUA move forward with much needed upgrades that should ultimately reduce the regulatory burden on credit unions,” said Elizabeth Eurgubian, deputy chief advocacy officer for CUNA.

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