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NCUA Board Approves Hi-Tech Improvements and Lengthening Exam Cycle in 2017-2021 Strategic Plan; Expects No Change to FCU Op Fee
Friday, July 22, 2016 6:50 AM

The National Credit Union Administration, in its July board meeting Thursday, approved its 2017-21 Strategic Plan. The plan, first introduced for comment at its January 2016 open board meeting, summarizes internal and external factors affecting the agency and the credit union system, evaluates NCUA programs and risks, and provides goals and objectives.

The agency's three top strategic goals described in the five-year plan are:

  • To ensure a safe and sound credit union system;
  • To promote consumer protection and financial literacy; and
  • To cultivate an inclusive, collaborative workplace that maximizes productivity and enhances impact.

Most significantly, the plan updates NCUA's performance goals for exams as part of the agency's Exam Flexibility Initiative, and it removes requirements for examining certain credit unions each calendar year starting in 2017.

Board Chairman Rick Metsger said, "The agency will focus on upgrading technology while reducing the onsite burden on credit unions."

Plans are underway to establish an interim goal of completing an efficient and effective exam process through the end of 2016. The plan will shift control to allow flexibility at the regional level to set appropriate risk-based exam cycles in order to remove the currently existing rigid calendar. Some exams scheduled now for fourth quarter may move to first quarter 2017. 

Board Briefing - Mid-Year 2016 Budget Briefing

The board briefing examined the status of NCUA's operating budget at the mid-point of 2016. NCUA's chief financial officer indicated that NCUA expenditures are projected to decline by about $2.7 million for 2016. The revised costs are based on current projections of staffing trends through the end of 2016. NCUA staff believes there will be no recommendation to reduce the FCU operating fee for 2017.

The Board discussed the budgetary process and NCUA's overall efforts to provide transparency to its stakeholders. "The agency has made a lot of progress in terms of transparency of its budget though few seem to be taking advantage of it," said Board Member Mark McWatters, "Don't tell me you want a budget hearing and then don't show up. Tell me what you think."

Click here to review the 2016 Budget Briefing.

Share Insurance Fund ("NCUSIF") Quarterly Report

The number of CAMEL code 4 and 5 credit unions fell to 209 in 2016 second quarter; more than half had assets of $10 million or less. Six federally insured credit unions failed in the second quarter, bringing the total to 11 failed credit unions this year.

Click here to review the quarterly NCUSIF Report.