Dear Boards of Directors and Chief Executive Officers:
During its December 2024 meeting, the NCUA Board approved changes to the agency’s examination scheduling policy for federally insured credit unions (FICUs) as part of approving the 2025–2026 budget. These examination scheduling changes were noted in Letter to Credit Unions 25-CU-01, NCUA’s 2025 Supervisory Priorities.
The adopted changes outlined in this letter became effective on January 1, 2025. The changes allow the NCUA to:
- Extend the time between examinations for qualifying credit unions with assets of $1 billion to $10 billion.
- Improve coordination with state supervisors for examinations of qualifying large federally insured, state-chartered credit unions (FISCUs).
- Better respond to emerging risks and priorities using available resources.
The agency will endeavor to operate within the new examination scheduling timeframes in table 1 below. However, some credit unions may be examined earlier or later than the new policy’s timeframes until the agency’s examination program can fully adjust to the new policy.
Also, the new examination scheduling policy does not limit the NCUA’s authority to examine any FICU as frequently as the agency deems necessary. The NCUA will continue to consider financial trends, risks, and other facts or circumstances to determine if a credit union’s condition warrants more frequent examination or supervision contacts.
|
Criteria |
Time from Last Exam Completion Date to Next Exam Start Date |
|---|---|
|
8 months to less than 12 months |
|
|
8 months to less than 12 months |
|
12 months to less than 16 months |
|
14 months to less than 18 months3 |
|
Once every 5 years |
The NCUA will continue to coordinate with each state regulator in examining FISCUs, and generally will conduct such examinations jointly. If you have any questions related to examination scheduling, refer to the resources on NCUA’s Exam Flexibility Initiative website or contact your regional office.
Sincerely,
/s/
Kyle Hauptman
Chairman
Footnotes
1 For some FISCUs, such as smaller ones, the NCUA at its discretion may rely on a review of the applicable state regulator’s examination.
2 As defined in § 702.201 of the NCUA’s Regulations.
3 Small FCUs with limited segregation of duties that are otherwise eligible for an extended exam cycle may receive more frequent examinations on a random sample basis.