ALEXANDRIA, Va.—NCUA Board Member Mark McWatters is again calling for the agency to move to an 18-month exam cycle for well-run CUs.
In the March edition of The NCUA Report, McWatters states that there are many things today that “do not make sense,” adding that “policies from NCUA should not be on that list.”
“Yet, while there are others, the agency’s current official policy, to maintain a 12-month examination cycle even for well-managed federally insured credit unions, does not stand up in light of recent developments and should be revisited sooner rather than later,” writes McWatters.
“Unlike the bank regulators, NCUA does not need additional permission to approve a change in the examination cycle. This fact makes it even more disconcerting that NCUA has not officially considered this matter, particularly because NCUA is participating in the EGRPRA review process along with the bank regulators,” he says.
McWatters points out the bipartisan effort from Reps Frank Guinta (R-NH) and Ruben Hinojosa (D-TX), urging NCUA to adopt the longer examination cycle.
“This is a positive step, and it brings more attention to this issue,” writes McWatters. “At the same time, Congress should not have to urge the agency to work on fundamental issues, such as the examination cycle.”
Also in this month’s Report, NCUA Board Chairman Debbie Matz addresses how NCUA’s new rule on member business lending marks a new era for the agency and for credit unions—a new era defined by “principles-based regulations, not by prescriptive limits on credit unions.”
Vice Chairman Rick Metsger details how the agency is committed to modernizing its rules.
“One year ago I announced my commitment to devolution—modernizing a number of NCUA’s key rules and procedures to provide credit union unions flexibility to meet their members’ needs and chart their own futures,” states Metsger. “Our risk-based capital rule, our fixed-assets rule, and revisions to our association common-bond rule were all efforts to devolve authority to credit union boards and management in a prudent way. Our recently completed member business lending rule is another major step forward in this direction.”
Other articles in this month’s issue include:
- Office Of Examination And Insurance Report: NCUA Board Approves Modernized Member Business Lending Rule
- Board Actions: Share Insurance Fund Continues Strong Positive Trends
- 2015: A Strong Year for Credit Unions Overall
- It’s Not Just About Financial Literacy—It’s Also about Financial Well-being
- NCUA Supervisory Committee Video Series Available In Spanish
- Come Explore The World of Cents