In a letter to credit union leaders, the National Credit Union Administration (NCUA) elaborated on the goals behind its many ongoing initiatives to modernize how the agency conducts examinations and supervision. NCUA Chairman J. Mark McWatters explains in the letter, “the goals of these initiatives are to replace outdated, end-of-life examination systems, streamline processes, adopt enhanced examination techniques, and leverage new technology and data to maintain high-quality supervision of insured credit unions with less onsite presence.”
Five initiatives to modernize the exam process were approved by the NCUA Board and include: The Flexible Examination Pilot Program (FLEX); Office of National Examinations and Supervision (ONES) Data Driven Supervision; the Shared NCUA-State Regulator Federally Insured; State-Chartered Credit Union (FISCU) Program; the Enterprise Solution Modernization Program (ESM); and the Virtual Examination Program.
Some of the intended benefits of these initiatives are:
More efficient examinations and supervision
Reduced burden on credit unions
More consistent and accurate supervisory determinations
Greater ability to adapt to changes in the marketplace and credit union business models
Enhanced coordination with State Supervisory Authorities
Reduced travel costs
Improved quality of life for examiners
More secure, reliable, and flexible technology foundation able to support future expansion capabilities
Designed to complement each other, these initiatives will support and build upon each other to ultimately result in a fully modernized examination and supervision program.