September 1, 2020
CONTACT: Shelton Roulhac, NASCUS Communications; firstname.lastname@example.org
NASCUS SUPPORTS THE NCUA LEVERAGING TECHNOLOGY IN THE EXAMINATION AND SUPERVISION PROCESS; COMMENDS THE AGENCY FOR PROGRESS ON THE EXAMINATION MODERNIZATION INITIATIVE
ARLINGTON, Va. – In response to the NCUA’s request for Request for Information (RFI) on Strategies for Future Examination and Supervision Utilizing Digital Technologies, NASCUS has written a comment letter supporting the Agency’s efforts to leverage technology in the examination and supervision process. NASCUS argues by doing so, NCUA could reduce burden on federally insured credit unions, enhance the agency’s cooperative supervisory relationship with its state regulatory peers, and generate costs savings to the National Credit Union Share Insurance Fund (NCUSIF).
“We support this initiative without reservation and note that many state regulatory agencies had also been moving to reconfigure examination and supervision programs to maximize the utility of off-site supervision and examination work prior to the pandemic,” writes NASCUS Executive Vice President and General Counsel Brian Knight in the organization’s official comment letter.
Knight further notes that, “The implementation of an offsite examination program for NCUA will differ between federal credit unions (FCUs) and federally insured state credit unions (FISCUs).” For FISCUs, NCUA performs insurance reviews rather than full scope examinations, and primarily relies on Reports of Examination (ROE) issued by state regulatory agencies.
“It will be of critical importance to the success of an offsite examination program for FISCUs that NCUA continue to rely, to the fullest extent, on examinations conducted by state regulators. To do otherwise would be to negate any benefit of reduced burden on FISCUs from offsite examination.”
“NASCUS looks forward to working with NCUA to tailor the agency’s offsite examination program to its insurance reviews of state-chartered credit unions and cooperative working relationships with state credit union regulators.”
Shelton Roulhac, Vice President, Communications, email@example.com or (703) 528-5974
NASCUS is the national association that advocates for a strong and healthy state credit union system, and whose members include state regulatory agencies, credit unions, credit union leagues, and organizations that support the state credit union system.