Call Report changes to be forged via comment period, focus group

May 19, 2016 -- A 60-day comment period, and an industry focus group, will be among the methods used for collecting feedback in the process of modernizing the 5300 Call Report – which will work in conjunction with reviewing the overall exam process, according to comments made at today’s NCUA Board meeting.

In a new “board briefing” section of the meeting (which NCUA Board Chairman Rick Metsger said is designed to provide “thoughtful analysis and discussion of an issue while providing greater visibility to the regulator community on what we’re contemplating”), NCUA Office of Examination and Insurance Director Larry Fazio outlined the impetus for the modernization as “the first concrete step in a much broader and longer-term retooling of now NCUA approaches its role in the credit union system.” He noted, for example, advances in technology could result in spending less time on site at credit unions – and even that periodic exams, whether annual or every 18 months, “may be an antiquated concept in the future.”

Fazio indicated that NCUA will spend 2016 gathering information through a comment period and focus groups, among other things, to build background on what data a new call report would collect. Noting that other federal financial regulatory agencies are also modernizing their call reports, he added that NCUA would be looking at dropping some data points the agency has long collected.

Further, Fazio said the agency wants to tap into resources credit unions are already using themselves, “so we don’t have to burden the credit union” in asking them to collect.

Saying call report modernization is “transformational,” NCUA Chairman Rick Metsger announced that he has asked NCUA Region IV Director Keith Morton to head up a working group on the overall exam process. (Last week, Metsger announced an overall initiative to review and overhaul the exam process.) He said he would be looking for a report from the group in 90 to 120 days.