WASHINGTON — Credit union executives are growing more dissatisfied with the examination process, according to the latest numbers from CUNA on CEO exam satisfaction.
CUNA's ongoing poll of credit unions' satisfaction with the federal and state examination processes, as of February 2014, showed that while more CEOs were satisfied with their exams (58%) than dissatisfied (27%), the number has slipped from 2012's results of 61% and 25%.
The study also uncovered a pain point that may be leading to the slight shift in CEO opinion — exams tended to take longer in 2013 (9.1 days) than in 2012 (7.9 days).
The poll also revealed that the number of credit unions reporting being under one or more Documents of Resolution declined in 2013 (41%) from 2012 (43%); exams conducted by state examiners are substantially less likely to include DORs than exams in which the NCUA is involved; and examinations conducted solely by state examiners tend to be rated slightly better than NCUA-only exams. However, joint exams were rated much lower than either state- or NCUA-only exams.
NCUA examiners garnered some positives from the poll, including giving credit union management the opportunity to comment on or respond to examination findings before they were shared with others; being knowledgeable about the credit union being examined; being knowledgeable about key safety and soundness issues and regulatory requirements; and taking time to discuss preliminary exam findings prior to the exit meeting.
CEOs concurred that examinations are requiring more CU attention, with four of five respondents saying that heavier regulatory and examination requirements are placing increasing pressure on credit union resources. A number of CUs complained, as well, about the sometimes excessive use of DORs.
CUNA stated that CEO concerns from the study will be shared with NCUA.
