The National Credit Union Administration announced it would move all exams of regulated entities offsite through May 1 in response to the COVID -19 pandemic.
The announcement came as the federal regulator said it would maintain a strict offsite policy for all employees and contracted support staff as of March 16, and it said the offsite policy would remain in effect until further notice.
“We will re-evaluate this approach through the duration of the COVID-19 pandemic and will notify credit unions of any changes to the procedures described herein,” NCUA said in a press release announcing the policy. “Our top priority is the safety of agency staff, credit union employees, and members. During this time, the NCUA will limit the burden imposed on credit unions so that they can focus on providing uninterrupted service to their members.”
NCUA said its first priority would be credit unions who were experiencing problems, including significant financial or operational problems.
“This includes credit unions that have asked for assistance and those that the NCUA determines may need assistance based on their financial and operational condition. Examiners will work with credit unions to identify what assistance is needed,” NCUA stated.
The next priority includes contacting all credit unions.
“Examiners will contact each credit union periodically to discuss the institution’s operational and financial status, including any associated challenges, and whether any assistance is needed.,” NCUA stated.
Outreach between March 30 and April 10 will create a baseline for each credit union’s condition, NCUA stated, and staff then will check-in periodically during the disruption.
The third priority will be offsite examinations themselves.
“Unless approved by the Office of Executive Director, examiners will not require a credit union to provide information to conduct offsite examination work,” NCUA stated. “If credit unions are occupied with addressing the impact of the COVID-19 pandemic on their operations, employees, and members, they should not be required to address an offsite examination request unless it is a serious or time-sensitive matter.”
However, NCUA stated that when a credit union is able to provide documents and make staff available, examiners will continue their offsite work.
“This will help both the agency and credit unions plan for resource needs when the NCUA reintroduces onsite examinations. In some cases, if examination work can be completed offsite during this time, the NCUA may not conduct any further examination work for a credit union during the 2020 calendar year,” NCUA stated.
“Consistent with long standing practices, examiners will consider the extraordinary circumstances credit unions are facing when reviewing a credit union’s financial and operational condition over the coming months.”