Amid ongoing COVID challenges, agency outlines supervisory priorities

The NCUA on Tuesday outlined its supervisory priorities and other aspects of the agency’s examination program for 2022, with the agency saying it remains committed to focusing its examination activities on the areas that pose the highest risk to credit unions, credit union members and the National Credit Union Share Insurance Fund.

The agency stated that it recognizes the ongoing challenges faced by credit unions and their efforts to assist members affected by the COVID-19 pandemic, and encourages credit unions to continue working with their members who may be experiencing financial difficulty.

Given the ongoing uncertainty associated with the COVID-19 pandemic, the agency says it will continue to conduct examination and supervision activities primarily offsite. Working with its public health consultant, the agency continues to closely monitor the COVID-19 pandemic trends and will resume onsite examination and supervision work when safe to do so.

Further, the agency’s flexible examination scheduling policy will continue in 2022, and examinations of credit unions that qualify for the extended examination cycle will be scheduled accordingly, according to the NCUA. Most federal credit unions with assets under $50 million will continue to receive examinations conducted based on the Small Credit Union Exam Program, and for all other credit unions, examiners will use the agency’s risk-focused examination procedures to conduct the examination.

According to the NCUA, its 2022 supervisory priorities (details in link) include:

  • credit risk management;
  • information security (cybersecurity);
  • payment systems;
  • BSA compliance and AML/Countering the Financing of Terrorism;
  • capital adequacy and risk based capital rule implementation;
  • loan loss reserving;
  • consumer financial protection;
  • loan participations;
  • fraud;
  • LIBOR transition; and
  • interest rate risk.

Credit unions with questions about the agency’s 2022 supervisory priorities are encouraged to contact their regional NCUA office.

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