Monitor survey results mixed on NCUA exams
Sept. 13, 2013 – This month’s NAFCU Economic & CU Monitor shows mixed results from a member survey about the efficiency and effectiveness of NCUA examinations, with 12 percent saying they perceive the process as worse than before and 25 percent saying it is better.
The survey was inspired by NCUA’s stated commitment to “improve clarity and consistency during the process.” The Monitor said, “Providing a clear target for credit unions promotes fairness, reduces operational disruptions and ultimately results in improved safety and soundness as all credit unions are evaluated according to common supervisory principles and procedures.”
Only 8 percent of respondents rated their examiner as more competent than in the past, while 15 percent found their examiner to be less competent. Nine percent believed the clarity of the exam reports was better, while 7 percent disagreed.
The median length of an examination was 12 days, and smaller credit unions (less than $100 million in assets) were given less lead time, on average, than larger credit unions (more than $1 billion) – eight days on average for the former and 13 for the latter. The longest examination duration was 120 days.
Finally, of those respondents who received a Document of Resolution after their exams, just 59 percent believed it was justified. Eighty-six percent of those who did not feel it was justified believed that “their examiner had made a minor issue into a major one.” Fifty-seven percent of dissatisfied respondents said they would be more likely to appeal their results if the appeals process were independent.
NAFCU Economic & CU Monitor