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ECU Monitor: CUs concerned with exam consistency
The November issue of NAFCU's Economic & CU Monitor report – now available for download – found over half of survey respondents are at least somewhat concerned with examination consistency, with 43 percent reporting that their highest priority for exam reform was more consistent application of rules and guidance.
The survey also found that when compared to 2018, the median length between exams has remained unchanged at 12 months despite the NCUA's goal of utilizing an extended exam cycle for well-capitalized and well-run credit unions under $1 billion in total assets. NAFCU last week met with the NCUA to discuss efforts to modernize and improve the agency's examinations.
The association has previously recommended that the NCUA expand eligibility for an extended 18-month exam cycle for all well-run, low-risk credit unions, and urged the NCUA to reconsider its approach to supervision and better coordinate resources and expertise with other regulators, including state supervisory authorities.
Also included in the latest Economic & CU Monitor are results from the Credit Union Sentiment Index (CUSI), an index based on NAFCU member responses to eight questions on growth and earnings outlook, lending conditions and regulatory burden.
The CUSI declined in October, despite a continued rise in the three-month moving average. Nearly half of all respondents with a positive outlook on earnings cited strong loan growth and loan performance as the chief reason for that optimism.
NAFCU relies on survey responses to provide its members a glimpse of trends affecting the credit union industry as a whole. The association also uses survey responses to inform its advocacy efforts on Capitol Hill and with regulatory agencies such as the NCUA, CFPB and Federal Reserve. Next month's survey is focused on the Bank Secrecy Act/anti-money laundering; responses are due Dec. 6.
Later this week, NAFCU board members will relay insights from the association's Annual Report on Credit Unions, largely developed with feedback from member credit unions, during a meeting with Federal Reserve Board Governor Michelle Bowman.