NCUA Seeks to Modernize Examination Process


The NCUA’s Business Innovation Office has put out a request for information on potential challenges presented by a new, standardized format for loan, deposit, and investment data. The NCUA’s goal is to modernize, formalize, and standardize data formats collected during examinations from the core data processing and offline systems used by credit unions.

“We recognize the need to update the call reports,” said John Trull, NWCUA’s AVP, Regulatory Advocacy. “However, we also need to make sure that this initiative does not unduly cause financial harm to small credit unions that still have non-automated systems or basic core processors.”

The NCUA expects that credit unions will benefit through a more consistent examination process, a more efficient use of examiner time, reduced onsite time, and enhanced analytics.

Under the proposed data format provided for discussion purposes in the RFI, NCUA would increase the electronic data collection to nine member profile, 120 loan, 20 share, and 12 investment fields. The NCUA anticipates that the full set of standard data will reduce a credit union’s time preparing for an examination, and allow examiners to focus on analyzing the data instead of creating customized data review tools and information requests from credit unions.

Once published in the Federal Register, there will be a 60-day comment period.

Click here to view the proposal.

Posted in Advocacy News, NCUA.