Examiner's Guide

The NCUA Examiner’s Guide is a resource for use in the supervision of credit unions. The guide is specifically addressed to examiners, and assists in the scoping process, on- and off-site supervision contacts, and more. The guidance provided in the guide may not necessarily be appropriate for every situation. NCUA’s risk-focused approach requires that examiners exercise professional judgment to assess the risk inherent in a given credit union operation and determine the scope of the examination by taking the many variables presented by an individual credit union into consideration. When examiners determine existing or potential risk is present, they may perform the procedures necessary to determine the extent of that risk and any mitigating circumstances related to the risk. Examiners will use the supervisory criteria contained in the guide to evaluate a credit union’s condition based on the preponderance of relevant factors. Examiners will work with credit union officials and staff to take the steps necessary to correct or reduce unwarranted risk.

The Examiner’s Guide is intended to provide a framework for more consistent application of staff judgment with respect to conclusions about a credit union’s financial and operational condition, and related CAMEL and risk ratings. It also provides a consistent approach for evaluating the adequacy of a credit union’s relevant risk-management processes. Supervisory criteria detailed in this guide are not strict requirements unless noted as required by law or regulation.

While the guide does not impose requirements on credit unions, it offers information about the examination and supervision process that credit unions may find useful. The NCUA offers many resources for credit unions and the public when they have questions about the Federal Credit Union Act and NCUA rules and regulations, such as NCUA Interpretive Rulings and Policy Statements, Letters to Credit Unions and other Guidance, and Legal Opinions.

With the exception of the content in the online version of the Examiner’s Guide, which is being updated on a continuing basis, the PDF chapters below were last updated in June 2002, and may not reflect regulatory or policy changes adopted since that date. Please review the table below carefully to determine if updated content is available in the online version of the Examiner’s Guide.

If you have questions that are not addressed in the Examiner’s Guide, you may call the Regional Office in the region where the credit union is located.

The chapters are listed below:

Table of Contents

Chapter 1
Risk-Focused Program (updated content available in the Risk-Focused Examination Program section of the online Examiner’s Guide

Chapter 2
Scope Development and Planning (updated content available in the online Examiner’s Guide; content has been incorporated into the Risk-Focused Examination Program section)

Chapter 3
Total Analysis Process (updated content available in the Total Analysis Process section of the online Examiner’s Guide

Chapter 4
Internal Controls

Chapter 5
Supervisory Committee

Chapter 6
Information Technology

Chapter 7
Management

Chapter 8
General Ledger

Chapter 9
Cash Analysis

Chapter 10
Loans - General Loan Review, Credit Risk, Delinquency, & Charge Offs (updated content available on Commercial and Member Business Loans available in the online Examiner's Guide)

Chapter 11
Allowance for Loan and Lease Losses

Chapter 12
Investment Analysis

Chapter 13
Asset Liability Management (updated content available in the Interest Rate Risk section of the online Examiner’s Guide)

Chapter 14
Share Structure

Chapter 15
Profitability

Chapter 16
Net Worth and Other Equity Accounts

Chapter 17
Prompt Corrective Action (see the Enforcement Manual and the Prompt Corrective Action section of the NSPM)

Chapter 18
Regulatory Compliance

Chapter 19
Consumer Compliance (*Removed)

Chapter 20
Report Writing (updated content available in the Exam Report Writing Exam section of the online Examiner’s Guide)

Chapter 21
Joint Conference/Exit Meeting (updated content available in the Interacting with a Credit Union section of the online Examiner’s Guide)

Chapter 22
Examination Evaluation and Review Policy (see the Quality Assurance section of the NSPM)

Chapter 23
Low-Income Credit Unions

Chapter 24
Shared Branch (updated content available in the Shared Branching section of the online Examiner's Guide)

Chapter 25
Credit Union Service Organizations (updated content available in the CUSOs section of the online Examiner's Guide)

Chapter 26
Federally Insured State-Chartered Credit Unions (FISCUs) (updated content available in various sections of the online Examiner’s Guide)

Chapter 27
Shortages (updated content available in the Fraud section of the online Examiner’s Guide)

Chapter 28
Bond Coverage (updated content available in the Fidelity Bond Coverage section of the online Examiner’s Guide)

Chapter 29
Special Assistance, Letters of Understanding And Agreement, Conservatorships, and Special Actions (see the NCUA Special Assistance Manual, the NCUA Enforcement Manual, and the Administrative Remedies section of the NSPM)

Chapter 30
Administrative Actions (see the NCUA Special Assistance Manual, the NCUA Enforcement Manual, and the Administrative Remedies section of the NSPM)

Chapter 31
Liquidations (see the NCUA Special Assistance Manual, the NCUA Enforcement Manual, and the Administrative Remedies section of the NSPM)

Chapter 32
Incidental Powers