NCUA and four regulatory agencies on Tuesday issued examiner guidance in an effort to promote consistency and flexibility in the supervision and examination of financial institutions affected by the COVID-19 pandemic.
In assessing institutions under the principles of the guidance, examiners will consider an institution’s’ asset size, complexity and risk profile, as well as the industry and business focus of its customers, the guidance from NCUA, the Federal Reserve Board, FDIC, OCC and CSBS states.
“Examiners will consider the unique, evolving, and potentially long-term nature of the issues confronting institutions and exercise appropriate flexibility in their supervisory response,” the guidance states. “Stresses caused by COVID-19 can adversely impact an institution’s financial condition and operational capabilities, even when institution management has appropriate governance and risk management systems in place to identify, monitor, and control risk.”
The guidance can be accessed on NCUA’s website.