Dec. 12, 2018

CONTACT: Shelton Roulhac, NASCUS Communications; sroulhac@nascus.org

STATE REGULATORS, NCUA LAUNCHING ALTERNATING EXAM PILOT PROGRAM JAN. 1

“The alternating examination pilot program could lead to a significant reduction in the regulatory burdens of federally-insured, state-chartered credit unions.”

On Jan. 1, 2019, six state credit union regulators and NCUA will launch an alternating examination pilot program for a select group of federally insured, state-chartered credit unions. The pilot program is the result of ongoing work by a joint State Supervisor-NCUA working group comprised of representatives from NASCUS, several state regulators, and NCUA. The working group studies ways to improve supervisory efficiencies, maintain a sound supervisory program, and reduce the burden on federally insured, state-chartered credit unions.

“We have found the State Supervisor-NCUA working group to be extremely productive and are thrilled about the upcoming launch of the pilot,” said NASCUS President and CEO Lucy Ito. “Alternating examinations have the potential to reduce supervisory burdens on credit unions, diminish the wear and tear of examiners’ road time, and preserve limited agency budgets. NASCUS applauds the participating state supervisory agencies and NCUA for their willingness to test a new approach that could positively impact both federally insured, state-chartered credit unions and the agencies that supervise them.” 

The six participating state regulators are: the California Department of Business Oversight, the Florida Division of Financial Institutions, the New Hampshire Banking Department, the Oklahoma State Banking Department, the South Carolina Office of the Commissioner of Banking, and the Texas Credit Union Department.

The pilot will evaluate three alternating examination program approaches:

  • Alternating lead—the NCUA and state regulators conduct joint examinations of federally insured, state-chartered credit unions, alternating which agency serves as lead each cycle.
  • Alternating with limited participation—the NCUA and state regulators alternate conducting examinations with some involvement from the other agency.
  • Alternating—the NCUA and state regulators alternate conducting examinations independently.
The National Association of State Credit Union Supervisors (NASCUS) is the primary resource and voice of the state governmental agencies that charter, regulate and examine the nation’s state-chartered credit unions. NASCUS membership is made up of state-chartered credit unions, state regulators and other supporters of the state credit union system. NASCUS is the only organization dedicated to the defense and promotion of the state credit union charter and the autonomy of state credit union regulatory agencies.