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Latest ECU Monitor explores NCUA examinations
NAFCU's latest Economic & CU Monitor – now available for download – dives into the NCUA’s examination trends and focus areas, which have generally remained consistent with observations from last year.
On average, the time between respondents' last two exams was 16 months, which was above the reported period of 14 months in 2020. As compared with last year's survey results, the duration of exams decreased from an average of 23 days to 22 days, which may reflect modest refinements in offsite exam procedures.
Notably, pandemic-related factors continue to exert influence over certain exam trends and priorities. From an array of different examiner focus areas, the most frequently cited area of interest was administration of pandemic-related consumer relief programs.
"NAFCU continues to advocate for a suite of modern examination improvements to afford credit unions greater flexibility and to ensure that exams are fair, efficient, and reasonably tailored to manage risk within the credit union system," noted the NAFCU Research Team.
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 rebounded in September as declines in loan demand and regulatory burdens were offset elsewhere. Of note, the largest improvement was in the growth component. Additionally, the September reading was consistent with pre-COVID levels.
NAFCU relies on survey responses to provide its members a glimpse of trends affecting the credit union industry as a whole and inform its advocacy efforts. This month, credit unions are encouraged to provide insights on cybersecurity. The deadline for participation is Nov. 10.
For more on NAFCU's award-winning research team, check out the association's Macro Data Flash reports for insights into interest rates, auto sales, home market.