The National Credit Union Administration announced today that it will eliminate the annual examination requirement for federal and federally insured state chartered credit unions. The change was part of NCUA’s 2017-2021 strategic plan, which was unanimously approved by the board today.
Effective immediately, federal credit unions will not be required to undergo an exam every calendar year (though the time between exams may not exceed 23 months). Regional directors will have discretion in scheduling exams for federally insured, state-chartered credit unions with assets over $250 million, based on several factors including the institution’s risk profile and the amount of time since the last exam. Chairman Rick Metsger said that further changes to the credit union exam cycle may be forthcoming after recommendations from NCUA’s ongoing Exam Flexibility Initiative.
In addition to approving the strategic plan, the board reviewed the agency’s budget, projecting a decline in expenditures of $2.7 million.