ALEXANDRIA, Va. (Jan. 7, 2020) – The National Credit Union Administration today issued its annual letter to credit unions listing its 2020 supervisory priorities as well as updates on regulations and the agency’s modernization programs.
The full letter is available in the Letters to Credit Unions and Other Guidance section of NCUA.gov.
“This is going to be an exciting and productive year for the NCUA,” Chairman Rodney E. Hood said. “We made important strides in 2019 towards updating regulations, easing burdens on credit unions, as well as modernizing our examination process. These efforts will continue in the new year.
“Credit unions and their members can be assured the NCUA’s commitment to safety and soundness and to protecting the Share Insurance Fund is the foundation for everything we do,” Hood said. “By providing a modern regulatory system and supervision framework that is effective without being excessive, we will maintain a strong credit union system that promotes innovation, inclusion, and member services.”
The agency’s 2020 supervisory priorities are:
- Bank Secrecy Act and anti-money-laundering compliance;
- Consumer financial protection;
- Credit risk and liquidity risk;
- Continue monitoring the implementation of the new standard for current expected credit losses, or CECL; and
- Planning for the transition from the London Interbank Offered Rate, or LIBOR, as the benchmark for setting interest rates.
The letter also describes the NCUA’s modernization efforts, including the planned general release of NCUA Connect, the agency’s new user portal, and MERIT, the new examination platform.
Finally, the letter summarizes statutory and regulatory updates, including additional guidance on serving legal hemp businesses; changes in the appraisal threshold for commercial real estate transactions; the amended supervisory committee audits rule, which took effect Jan. 6; and the amended public unit and nonmember shares rule, which takes effect Jan. 29.