Created as part of the NCUA’s Examination Flexibility Initiative, the NCUA-State Supervisory Working Group’s goal is to minimize the burden on state-chartered credit unions that results from having a separate prudential financial regulator and insurer. The working group helps to improve the coordination and scheduling of joint exams, and reduce redundancy between the NCUA and state supervisors where possible.
Alternating Examination Pilot Program
The NCUA and six state regulators are piloting an alternating examination program for federally insured, state-chartered credit unions. This pilot will provide insight into how an alternating examination program can improve coordination and optimize federal and state resources, while still maintaining the safety and soundness of federally insured, state-chartered credit unions.
The program will evaluate the following alternating examination programs:
- Alternating lead—the NCUA and state regulators conduct joint examinations of federally insured, state-chartered credit unions, alternating which agency serves as lead each cycle.
- Alternating with limited participation—the NCUA and state regulators alternate conducting examinations with some involvement from the other agency.
- Alternating—the NCUA and state regulators alternate conducting examinations independently.
The pilot began on January 1, 2019, and will run for approximately three years.