NCUA’s alternating examination pilot program may lead to decision soon

Beginning on January 1, 2019, NCUA and state supervisors from California, Florida, New Hampshire, Oklahoma, South Carolina, and Texas kicked off a pilot program aimed at reducing the regulatory burden of federally-insured, state-chartered credit unions (FISCUs).

NCUA and state regulators evaluated three means of conducting alternating examinations on credit unions:

• Alternating lead—the NCUA and state regulators conduct joint examinations, alternating which agency serves as lead each cycle.
• Alternating with limited participation—the NCUA and state regulators alternate conducting examinations with some involvement from the other agency.
• Alternating—the NCUA and state regulators alternate conducting examinations independently.

The regulators ran the program for approximately three years to determine its efficacy, selecting a working group of credit unions based on CAMELS ratings, asset size, workload, and timing of examination cycles.

 

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