Letter to Credit Unions 24-CU-01 outlines the National Credit Union Administration’s (NCUA) supervisory priorities and other updates to the agency’s 2024 examination program.
In it, the agency focuses on the areas posing the highest risk to credit union members, the credit union industry, and the National Credit Union Share Insurance Fund (NCUSIF).
In related news, registration for the 2024 Supervisory Priorities webinar is now open. Click here, and then click on the “registration for the webinar 2024 Supervisory Priorities is now open” link. This webinar is scheduled for 11 a.m. (Pacific) on February 8 and will run approximately one hour.
The credit union system over the last year has remained largely stable in its performance and relatively resilient against economic disruptions. However, during 2023, the NCUA observed growing signs of financial strain on credit union balance sheets.
The rise in interest rate and liquidity risks resulted in an increase in the number of composite CAMELS code 3, 4, and 5 credit unions. Inflation and interest rates are affecting household budgets, which could lead to an increase in credit risk in future quarters. Economists are also forecasting an economic slowdown as the lagged effects of elevated interest rates take hold.
Each of these developments could affect credit union performance, create challenges for consumers, and pose a risk to the Share Insurance Fund in 2024.
Read the letter here.
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Using the above phone number and email address, you can gain access to a knowledgeable team that’s ready to address all your credit union’s compliance inquiries — promptly and efficiently. With the Compliance Hotline, you can proactively respond to impromptu questions and issues by getting clarity and insight on technical topics that normally slow you down. We want to help you unlock the full potential of your League membership by leveraging the resources and support you need to navigate the complex world of compliance effortlessly. We’re ALWAYS just a phone call or email away!
Additionally, other League-member compliance resources include:
For more information, email Lisa Quaranta.
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