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ALEXANDRIA, Va. (Dec. 3, 2018) – The National Credit Union Administration, the Financial Crimes Enforcement Network and three other federal depository institutions regulators issued today a joint statement encouraging depository institutions to explore innovative approaches to meet their Bank Secrecy Act and anti-money laundering compliance obligations and to further strengthen the financial system against illicit financial activity.

The joint-agency statement (opens new window) recognizes that private sector innovation, including new ways of using existing tools or adopting new technologies, can help combat money laundering, terrorist financing, and other illicit financial activity. Depository institutions are encouraged to implement innovative approaches responsibly where appropriate. The statement also makes clear that regulators are committed to continued engagement with the private sector to modernize and innovate in their BSA/AML compliance programs.

The NCUA establishes no new supervisory expectations related to the use of innovative strategies or technology like those discussed in the joint-agency statement and a credit union’s participation in such innovations related to BSA/AML compliance will not affect the agency’s assessment.

Regulators also welcome industry’s feedback on how they can best support innovative efforts through supervisory processes, regulations, and guidance. Those wishing to share such feedback in writing may do so by sending their submission electronically to FinCEN at [email protected].

Today’s statement is the result of a working group formed by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, FinCEN, the NCUA, the Office of the Comptroller of the Currency and Treasury’s Office of Terrorism and Financial Intelligence aimed at improving the effectiveness and efficiency of the BSA/AML regime.

ALEXANDRIA, Va. (Dec. 6, 2018) – Data on the financial performance of federally insured credit unions for the quarter ending Sept. 30, 2018, are now available from the National Credit Union Administration.

The NCUA’s Quarterly Credit Union Data Summary reports include an overview of the quarterly Call Report data as well as tables showing the recent history of major credit union performance indicators.

The NCUA also makes extensive credit union system performance data available in the Credit Union Analysis section of NCUA.gov. The analysis section includes quarterly data summaries as well as detailed financial information and graphics packages illustrating financial trends in federally insured credit unions.

ALEXANDRIA, Va. (Dec. 12, 2018) – On Jan. 1, 2019, the National Credit Union Administration and six state credit union regulators will launch an alternating examination pilot program for a select group of federally insured, state-chartered credit unions.

The NCUA has posted frequently asked questions (opens new window) about the pilot program on its website. Additional information specific to each state’s program will be available in the near future. The six participating state regulators are the California Department of Business Oversight, the Florida Division of Financial Institutions, the New Hampshire Banking Department, the Oklahoma State Banking Department, the South Carolina Office of the Commissioner of Banking, and the Texas Credit Union Department.

The pilot will evaluate three alternating examination program approaches:

• 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 program, based on recommendations in the 2016 Exam Flexibility Initiative report (opens new window), will run for one full alternating cycle, approximately three years. It will help the NCUA and state regulators determine how an alternating examination program could improve coordination and make the best use of federal and state resources.

The pilot program is the result of ongoing work by a joint NCUA-State Supervisor working group comprised of representatives from the NCUA, several state regulators, and the National Association of State Credit Union Supervisors. The working group studies ways to improve supervisory efficiencies, maintain a sound supervisory program, and reduce the burden on federally insured, state-chartered credit unions.

ALEXANDRIA, Va. (Dec. 12, 2018) – Federally insured credit unions generally saw continued positive trends in the third quarter of 2018, according to the latest NCUA Quarterly U.S. Map Review.

The review tracks performance indicators for federally insured credit unions in all 50 states and the District of Columbia and includes information on two important state-level economic indicators: the unemployment rate and home prices.

Nationally, overall membership continued to grow, concentrated in larger credit unions. Eighty-eight percent of federally insured credit unions reported positive net income during the first three quarters of 2018. Median annual loan growth in the year ending in the third quarter was 5.9 percent and median annual asset growth was 1.7 percent.

Board Action Bulletin

Agency Will Return to Three-Year Rolling Regulation Reviews in 2019

ALEXANDRIA, Va. (Dec. 13, 2018) – The National Credit Union Administration Board held its eleventh open meeting of 2018 at the agency’s headquarters today and unanimously approved three items:

• Lowering the normal operating level of the National Credit Union Share Insurance Fund to 1.38 percent from 1.39 percent.
• Posting the final report of the agency’s Regulatory Reform Task Force in the Federal Register, following a briefing by the Office of the General Counsel.
• A final rule making technical amendments to agency regulations to correct minor drafting errors and rescind certain unnecessary provisions.

The offices of the Chief Economist, General Counsel, and Examination and Insurance briefed the Board about the use of blockchain and other financial technologies (opens new window) by credit unions.

Board Lowers Normal Operating Level

The normal operating level (opens new window) of the National Credit Union Share Insurance Fund is now 1.38 percent, down from the previous level of 1.39 percent, set in 2017.

The normal operating level is the equity ratio set by the NCUA Board based on forecasted needs. The Federal Credit Union Act allows the NCUA Board to set the normal operating level between 1.20 percent and 1.50 percent. Funds available beyond the established normal operating level may be distributed to credit unions.

The agency intends to review the normal operating level annually.

Task Force Recommends Return to Regulation Review

The NCUA will return to its former practice of conducting three-year rolling reviews of its regulations and will post progress reports on its reform efforts on NCUA.gov every six months, following recommendations made by the agency’s Regulatory Reform Task Force (opens new window).

The final report (opens new window), which serves as the agency’s blueprint for future regulatory reform, makes detailed recommendations and is available on the NCUA.gov website and will be posted in the Federal Register. A report summary (opens new window) is also posted on the agency’s website.

The task force issued its first report (opens new window) in August 2017, which made detailed recommendations for amending or repealing regulations that were outdated, ineffective, or excessively burdensome. Since that report was issued, the agency has completed 10 of its recommendations and either proposed rules or begun action on five others.

The NCUA established the task force in 2017 to oversee the implementation of the agency’s regulatory reform agenda. That agenda was consistent with the purpose of Executive Order 13777, which was aimed at alleviating unnecessary regulatory burdens. While the NCUA, as an independent agency, was not required to comply with that order, the agency complied with its spirit.

Agency Seeks Comments on New Financial Technologies

The NCUA is seeking comments on the use of emerging financial technologies, such as blockchain and cryptocurrencies, and NCUA’s role in safeguarding the credit union system.

The agency’s Blockchain Working Group briefed the Board about opportunities and risks represented by these technologies and identified challenges around their use, including safety and soundness and regulatory compliance.

Credit unions may contact the working group by email at [email protected] with comments or concerns about new financial technologies, their plans to use them, and the possible impact on the credit union system.

Board Approves Rule Amending NCUA Regulations

The Board approved a final rule (opens new window) making technical amendments to NCUA regulations to correct minor drafting errors and rescind certain unnecessary provisions that are no longer applicable to credit unions.

These are language changes that do not substantially affect credit unions.

The final rule will become effective upon publication in the Federal Register.

The NCUA tweets all open Board meetings live. Follow @TheNCUA (opens new window) on Twitter, and access Board Action Memorandums and NCUA rule changes at www.ncua.gov. The NCUA also live streams, archives and posts videos of open Board meetings online.

ALEXANDRIA, Va. (Dec. 14, 2018) – The video recording of the Nov. 15, 2018, open meeting of the National Credit Union Administration Board is now available on the agency’s website.

Archived videos of past Board meetings may be viewed here, and each video remains on the site for one year.

At the November open meeting, the Board unanimously approved two items:

• Operating, capital, and Share Insurance Fund budgets for 2019 and 2020 to fund the agency’s essential activities and strategic priorities.
• A proposed rule to update fidelity bond requirements for corporate and natural-person credit unions, as part of the agency’s regulatory reform agenda.

The Chief Financial Officer briefed the Board on the third-quarter performance of the National Credit Union Share Insurance Fund.

The NCUA posts board meeting videos as part of the agency’s ongoing efforts to provide transparency and to allow those unable to attend Board meetings the opportunity to become better informed. An interval between the meeting and posting is necessary for the videos to comply with Section 508 of the Rehabilitation Act for the hearing and visually impaired.

The Board Actions page of the NCUA’s website has more information, including Board agendas, which are posted at least one week in advance of each open meeting; copies of Board Action Bulletins, which summarize the meetings; copies of Board memorandums and other documents.

ALEXANDRIA, Va. (Dec. 21, 2018) – The National Credit Union Administration will remain open and individual accounts will remain federally insured during the federal government shutdown.

The NCUA is an independent agency of the federal government, and its operating budget comes from fees charged to federal credit unions and transfers from the National Credit Union Share Insurance Fund. Credit union members’ accounts will continue to be insured by the Share Insurance Fund.

The government shutdown could affect credit unions, particularly those with federal employees in their memberships. As such, credit unions should plan to respond to members’ questions and consider other actions, such as:

• Ensuring policies provide flexibility to respond to members’ financial needs.
• Preparing for service interruptions if the shutdown affects access to credit union offices located on federal property.
• Prudently working with affected members, including providing advances to individuals receiving direct deposits from the federal government.
• Developing contingency plans with respect to participation in government programs that may be affected by the federal government shutdown.
• Communicating response plans to members, staff and volunteers in a timely manner.

Consistent with safety and soundness, credit unions may want to consider offering special programs to assist impacted members who need short-term loans, create loans with special terms and rates, or offer payment flexibility.

Credit unions should review NCUA’s Letter to Credit Unions, 11-CU-05, “Planning and Preparedness for a Potential Government Shutdown,” which provides guidance in the event of a government shutdown.

ALEXANDRIA, Va. (Jan. 3, 2019) – Federally insured, low-income credit unions that want to become certified Community Development Financial Institutions can apply to use the National Credit Union Administration’s qualification process for streamlined CDFI certification from Jan. 13 through Feb. 9.

The agency’s Office of Credit Union Resources and Expansion hosts a resource page with details about CDFI certification and the streamlined process. The agency’s application guide (opens new window) has the necessary instructions for the qualification process. The Community Development Financial Institutions Fund’s webpage (opens new window) offers information about the benefits of CDFI certification.

During the federal government shut down, approval of a credit union’s CDFI application by the U.S. Treasury may be delayed.

Developed by the NCUA and the CDFI Fund, the streamlined application process has helped 50 credit unions obtain certification as community development financial institutions.

ALEXANDRIA, Va. (Jan. 7, 2019) – The National Credit Union Administration begins 2019 with a new regional structure, part of an agency-wide reorganization that began in 2017. The agency completed the headquarters reorganization in 2018, while the consolidation from five to three regional offices is effective January 7, 2019.

The three realigned regions are:

Eastern Region
1900 Duke Street
Suite 300
Alexandria, Virginia 22314
Regional Director Jane Walters
[email protected]
703.519.4600

Area includes Connecticut, Delaware, the District of Columbia, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia.

Southern Region
4807 Spicewood Springs Road
Suite 5200
Austin, Texas 78759-8490
Regional Director Keith Morton
[email protected]
512.342.5600

Area includes Alabama, Arkansas, Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, North Carolina, Oklahoma, Puerto Rico, South Carolina, Tennessee, Texas, and the U.S. Virgin Islands.

Western Region
1230 West Washington Street
Suite 301
Tempe, Arizona 85281
Regional Director Cherie Freed
[email protected]
602.302.6000

Area includes Alaska, Arizona, California, Colorado, Guam, Hawaii, Idaho, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, Wisconsin, and Wyoming.

The agency’s Asset Management and Assistance Center, also headed by Mr. Morton, realigned its servicing business model and moved to a financial supervisory structure as part of the reorganization. The Center is located at 4807 Spicewood Springs Road, Suite 5100, Austin, Texas 78759-8490. The Center’s email address is [email protected], and the telephone number is 512.231.7900.

ALEXANDRIA, Va. (Jan. 8, 2019) – The public and other stakeholders will now be able to find the information they need more easily with the launch of redesigned versions of NCUA.gov and MyCreditUnion.gov (opens new window), the National Credit Union Administration announced today.

“The launch of our redesigned websites is part of the NCUA’s on-going efforts to streamline our operations and communication efforts,” NCUA Board Chairman J. Mark McWatters said. “Our stakeholders are diverse and they all need to be able to access information quickly and easily. Both of these websites are now more intuitive and accessible, and they will improve our ability to communicate with the broader credit union community and the public.”

The new NCUA.gov features a mobile-first design that allows users to access and view the agency’s website on a variety of platforms, including smartphones, tablets, laptops and desktops. The agency also made other improvements to the website, including:

• A redesigned homepage with short cuts linking users to frequently accessed information;
• New main menus and submenus to help users navigate the website;
• New features like searchable Letters to Credit Unions, legal opinions, Corporate Credit Union Guidance Letters, Board appeals, press releases, and conservatorships and liquidations;
• An improved search function for the entire website; and
• A redesigned careers page to help people interested in a position with the NCUA.

The NCUA’s redesigned consumer website, MyCreditUnion.gov, also features an improved, mobile-first design, new menu options, and a better search function. The agency also reorganized the website to help consumers more easily find popular content, applications, learning tools, and resources. Other enhancements to MyCreditUnion.gov include:

• A redesigned homepage with short cuts linking users to frequently accessed information;
• A new, interactive “Find an Answer” tool on the homepage that allows consumers to research their own consumer financial protection questions;
• Updated consumer financial protection information, including an expanded glossary of consumer financial protection and personal finance terms; and
• An interactive calendar of financial literacy events and initiatives for consumers and credit unions.

The NCUA will continue to add new features and additional content to these websites. Users can send their comments and suggestions for future improvements to NCUA.gov by email to [email protected] and to [email protected] for future improvements to MyCreditUnion.gov.