The League, CUNA, and state leagues are working to have their federal delegation sign a letter asking the NCUA to move to an 18-month exam cycle. Last year, the House unanimously passed H.R. 1553, the Small Bank Exam Cycle Reform Act, 411-0. This legislation amended the Federal Deposit Insurance Act (FDIA) to allow more small insured deposit institutions to qualify for the 18-month on-site examinations cycle.
Over the past few months, the League and CUNA have been working with the NCUA to have them also adopt an 18-month exam cycle for credit unions. The NUCA has previously worked on an 18-month cycle before the Great Recession. It’s interesting to note that credit unions remained relatively healthy during the recession. Most credit unions understood why the NCUA went to a more frequent examination period during the recession. Since the Great Recession has ended, credit unions would like to see the exam cycle move back to 18 months.
Reps. Frank Guinta (R-NH) and Ruben Hinojosa (D-TX) are sending a letter to NCUA Chairman Debbie Matz asking for the NCUA board to remain committed to regulatory relief and to return to an 18-month exam cycle. The League is reaching out to the Alabama and Florida delegation to get them to co-sign the letter by Feb. 16.