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Small CU examinations addressed by NCUA
ALEXANDRIA, Va. (7/23/12)—The National Credit Union Administration (NCUA) highlighted its new Small Credit Union Examination Program (SCUEP), directed toward credit unions with less than $10 million in assets, in a Letter to Federal Credit Unions (12-FCU-03) made public Friday.

The examination program is intended to streamline the process for small credit unions that have a solid record of performance, meaning, in part, a CAMEL rating of 1, 2 or 3.

"Small credit unions that are financially and operationally sound and present lower risk will typically have shorter examinations and more concise examination reports." The NCUA says in the letter.  It continues, "While we expect the majority of small credit unions will reap the benefits of the new SCUEP, Regional Offices do have discretion to either expand the scope of an exam or exclude an eligible (federal credit union) based on its level of risk."

The letter assures that SCUEP-eligible credit unions will continue to receive professional and thorough examinations that focus on areas of weakness, adverse trends or higher risks.

Credit unions receiving a SCUEP examination will continue to see:

  • Examination time commensurate with credit union size, structure, and risk profile;
  • Emphasis on improved communication with management;
  • Focus on issues and risks relevant to the credit union;
  • Optional meetings with the board of directors for qualifying credit unions;
  • Customized examination reports; and
  • Additional supervision where appropriate.
"NCUA believes the risk-focused SCUEP, coupled with training and assistance from OSCUI (the Office of Small Credit Union Initiatives)  will result in improved small credit union operations and a better allocation of agency resources," the letter states.

The letter goes on to describe the goals of OSCUI and how small credit unions can access those free services.

Use the resource link to read the complete letter.  Also see "NCUA releases guidance on multi-featured open-end loans" (this issue of News Now) to read details of another Letter to Federal Credit Unions released Friday by the agency.
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