Updated NCUA supervisory priorities outlined in letter to credit unions

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A new letter to credit unions updates NCUA’s 2020 supervisory priorities to reflect the economic conditions that have emerged in response to the COVID-19 pandemic, as well as statutory and regulatory changes that have occurred since March 2020.

In the letter, Rodney Hood, NCUA chairman, said that the agency will be updating the Examiner’s Guide to include additional guidance for examiners, including review procedures for assessing the safety and soundness of credit unions.

Examinations for credit unions qualifying for the NCUA’s extended examination cycle will continue to be scheduled in accordance with the agency’s exam flexibility initiative, while NCUA’s targeted Small Credit Union Exam Program procedures will be used to examine most federal credit unions with assets under $50 million, Hood said. For all other credit unions, examiners will conduct risk-focused examinations, concentrating on areas of highest risk, new products and services, and compliance with applicable laws and regulations, the letter stated.

Hood also included updates to NCUA’s primary areas of supervisory focus, including:

  • the Bank Secrecy Act compliance/anti-money laundering;
  • the CARES Act;
  • consumer financial protection;
  • credit risk management and allowance for loan and lease losses;
  • information systems and assurance (cybersecurity);
  • LIBOR transition planning;
  • liquidity risk;
  • serving hemp-related businesses; and
  • modernization updates.

The full letter to credit unions can be accessed on the NCUA website.

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