NCUA Begins Disclosing CAMEL Ratings to FISCUs

August 15, 2011 - The National Credit Union Administration (NCUA) announced a examination policy change for federally insured state-chartered credit unions. The NCUA will now disclose its CAMEL ratings to FISCUs. In an August 2011 Letter to Credit Unions, NCUA explained that FISCUs would be informed of NCUA CAMEL ratings during all insurance reviews and supervision contacts in which NCUA examiners are on-site. NCUA examiners will communicate the CAMEL ratings during the final meeting at the credit union.

The NCUA discussed the new policy with NASCUS and state regulators prior to instituting the policy. It was determined that when the State Supervisory Authority (SSA) and NCUA disagree on CAMEL ratings on joint contacts, they will discuss the differences in an attempt to resolve them. If differences cannot be resolved, NCUA examiners will proceed to disclose NCUA’s CAMEL simultaneously and on schedule with the SSA, but no later than the final meeting with credit union management and officials.

NCUA examiners will disclose their CAMEL component and composite ratings using guidance published in Letter to Credit Unions No. 07-CU-12 dated December 2007, along with sufficient information supporting the basis for the assignment of individual component and composite ratings.

To view the Letter to Credit Unions and the accompanying information sent to FISCUs follow this link to the NCUA website.