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June 13, 2012 – A June report to Congress by the Financial Stability Oversight Council details NCUA's response to Government Accountability Office recommendations, including the agency's creation of a prompt corrective action task force to review the capital-based PCA framework.

"The FSOC's report doesn't cover new ground, but it illustrates the council's growing role as a central overseer," said Carrie Hunt, NAFCU's general counsel and vice president of regulatory affairs.

NCUA Chairman Debbie Matz is a voting FSOC member.

The PCA task force at NCUA was createdto look at NCUA's PCA regulations, especially the risk-based net worth component. The group includes representatives from NCUA and state supervisors.

"NCUA staff will produce any suggestions for legislative improvements for NCUA Board consideration as recommendations to Congress," the FSOC notes. "NCUA also will continue to research approaches to early identification of troubled credit unions and will track related developments as the federal banking agencies consider enhancements to their PCA network."

NCUA's inspector general office has found fault with the agency's supervision of troubled credit unions and in its speed in identifying problems in connection with credit union failures.

More:

• NCUA working on GAO recommendations(1/5/12)
• GAO report