NASHVILLE, Tenn. — NCUA announced this morning it is creating an office to examine the nation's largest credit unions, the four over $10 billion in assets and corporates, as part of a reorganization of its examinations process.
The move follows NCUA's recent announcement that federal credit unions at the other end of the asset spectrum, those below $10 million with CAMEL ratings of three or better, will receive shorter annual exams and streamlined exam reports under the agency's Small CU Examination Program.
The four credit unions over $10 billion in assets are Navy FCU, Pentagon FCU, North Carolina State Employees' CU and BECU.
"It's clear that we need to enhance the supervision of the largest credit unions," NCUA Chairman Debbie Matz said this morning during remarks at NAFCU's annual convention. Matz, who pointed out that credit unions above $500 million control 63% of all credit union assets but receive only 19% of NCUA exam hours.
"Supervising a $10 million credit union the same as a $10 billion credit union doesn't make sense," said Matz. "As we all know, larger risks have wider consequences. So, we are reorganizing our existing resources to create an Office of National Examinations and Supervision to enhance oversight of the nation's largest consumer credit unions—those with more than $10 billion in assets—and also assume supervision of corporate credit unions."
The new Office of National Examinations and Supervision represents a reorganization of existing resources, said Matz. "This reorganization establishes a single office dedicated to the challenges of supervising the largest credit unions, promoting consistency of exam practices. In addition, it will leverage national and regional expertise to promote high-quality evaluations of risk and risk-management practices."
The current staffing level at NCUA will be sufficient to support the realignment. All staff in the Office of National Examinations and Supervision will be cross-trained to examine and supervise both consumer and corporate credit unions.
Matz said the Office of Small Credit Union Initiatives will take on a more consultative role. NCUA's economic development specialists will be working as strategic planning consultants, providing a wider range of assistance.