NCUA Letter to CUs Outlines 2013 Supervisory Focus, Promises More Clarity in Exam Guidance

Posted by Marissa Anema Friday, February 01, 2013 11:01:00 AM


ALEXANDRIA, Va. – NCUA’s supervisory focus for 2013 is to improve the capacity of both NCUA and credit unions in managing risk, according to a Letter to Federally Insured Credit Unions (13-CU-01) released Thursday. In addition, NCUA will continue providing more clarity in guidance to examiners and credit unions and consistency in agency practices, NCUA Chairman Debbie Matz states in the letter.

"As a regulator and insurer, NCUA's goal is a strong, safe credit union system. To that end, NCUA continues to incorporate lessons learned and feedback from credit unions into our examination approach," said Matz.

Areas in which NCUA will strive to enhance the clarity of examiners include member business lending (MBL), credit rating, and troubled debt restructurings (TDRs).

The letter said examiners will evaluate a credit union's capacity to manage risk in the following areas: operational risk involving technology and internal controls; and, balance sheet management, including interest rate and liquidity risk, concentration risk, and less established or complex products.

Based on feedback from credit unions, the agency has also modified the way it communicates information about how to contact NCUA and appeal exams, the letter states.

The full letter is available here.


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