WASHINGTON—A bipartisan group of 30 members of the U.S. House of Representatives, led by Reps. Frank Guinta (R-NH) and Rubén Hinojosa (D-TX), has signed a letter to NCUA Chairman Debbie Matz asking for the 18-month exam cycle to be extended to well-run credit unions.
“The number of credit unions continues to decline, down by nearly a quarter since 2008, due in no small part to overly burdensome regulations on the industry,” the group stated in their letter. “We strongly encourage the agency to implement a new extended examination schedule for credit unions to help your regulatory relief efforts.”
In January, the FDIC approved an interim final rule that allows well-managed community banks and thrifts with less than $1 billion in assets to qualify for the 18-month on-site exam cycle. Previously, only financial institutions with less than $500 million were eligible for the 18-month exam cycle. The change affected more than 600 institutions, according to Comptroller of the Currency Thomas Curry.
Lengthening exam cycles for credit unions has been a top priority of CUNA, the trade association reminded. CUNA Chief Advocacy Officer Ryan Donovan said CUNA appreciates the leadership of Guinta and Hinojosa in encouraging 30 of their House colleagues to sign on to this letter.
"This action will encourage the NCUA to continue down its path toward extended examination frequency," Donovan noted.
NAFCU, also a proponent of an 18-month exam cycle for well-run CUs, thanked the bipartisan group for their leadership in seeking regulatory relief for credit unions.
“Credit unions have been widely recognized by lawmakers and regulators for their prudent business model and for not causing the financial crisis,” said NAFCU President and CEO Dan Berger. “Credit unions are in particularly solid shape as an industry and do not require the additional burden of more-frequent exams. Extending the exam cycle for well-run credit unions will also help NCUA better allocate resources to address those institutions requiring more oversight.”