NCUA will contact CUs to identify emerging credit risks


NCUA is expanding its outreach in an effort to identify emerging credit risks that credit unions may be facing, the agency said in a letter on Wednesday.

Amid the COVID-19 public health crisis, NCUA’s outreach to credit unions was initially limited to operational status and liquidity. The new information regarding emerging credit risks that the agency collects will be used to provide credit unions with assistance and accomplish the agency’s mission, according to the letter from Rodney Hood, NCUA chairman.

“You are helping us understand the challenges credit unions are facing so we can identify or develop the assistance you need,” Hood’s letter stated. “Where there have been challenges with the pandemic, credit unions have adapted to continue to provide quality member service.”

Information previously gathered by NCUA indicates:

  • Operational status. Almost all credit unions report full or partial service to members. A few credit unions that have closed locations due to their sponsors being closed are continuing to serve their members’ needs on an appointment basis.
  • Lobby service. Many credit unions noted their lobbies are generally closed, but the vast majority are offering lobby appointments. Credit unions that are not offering lobby appointments are providing services using a drive-thru or offering appointments at another location.
  • Liquidity planning. Few credit unions report a need to increase borrowings.

Examiners will be contacting credit unions between May 4 and May 18 to review their answers to the full list of questions regarding operational status, liquidity and emerging credit risks, the letter stated.

The questions and the full letter can be accessed on NCUA’s website.



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