WASHINGTON, DC (January 21, 2016) — National Association of Federal Credit Unions (NAFCU) President and CEO Dan Berger issued the following statement in response to FDIC’s Board of Directors meeting today, during which they approved an interim final rule to allow well-managed community banks and thrifts with less than $1 billion in assets to qualify for the 18-month exam cycle. The previous threshold was $500 million.
“Given the recent FDIC action to allow certain banks an 18-month exam cycle, NAFCU again calls upon the NCUA to lengthen the exam cycle for healthy, well-run credit unions,” said Berger. “Credit unions did not cause the financial crisis, are in extremely sound shape as an industry and do not need the additional burden of more-frequent exams. Lengthening the cycle will also save NCUA resources for credit unions that are facing challenges and need more oversight. We appreciate that the NCUA has indicated it is open to an 18-month exam cycle, and we urge the agency to approve this much-needed relief for credit unions as soon as possible.”
The Comptroller of the Currency Thomas Curry also announced in remarks during the FDIC meeting that he had approved an identical interim final rule for institutions supervised by the Office of the Comptroller of the Currency.
This leaves credit unions as the only federally regulated depository institution subject to a strict, 12-month exam cycle at the federal level.
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.
