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NCUA would be required to establish an exam cycle of at least 18 months for well-run credit unions having assets of $1 billion or less under legislation introduced Thursday by Rep. Frank Guinta, R-N.H.

Guinta's H.R. 5419, the "Credit Union Examination Reform Act of 2016," would not preclude NCUA from establishing an 18-month exam cycle for all credit unions, regardless of asset size. Meanwhile, the bill would leave the agency flexibility to use a shorter cycle for credit unions based on safety-and-soundness concerns.

NCUA would have 100 days after the bill's enactment to implement the measure.

Guinta offered the bill one day after NCUA Board Chairman Rick Metsger wrote Guinta, a member of the House Financial Services Committee, about his own broad goals for extended exam cycles.

NAFCU Vice President of Legislative Affairs Brad Thaler said, "It is heartening that policymakers in both Congress and at NCUA are moving toward the same goal. We thank Congressman Guinta for his leadership on this issue and his recognition that credit unions need a reduction in regulatory burden. We also thank NCUA Chairman Rick Metsger for his work to date."

Thaler added, "We look forward to working with all policy makers to achieve optimum improvements in the examination process for all credit unions as expeditiously as possible."