The National Credit Union Administration (NCUA) issued its Letter to Credit Unions regarding its supervisory priorities for 2022 as well as an update on its examination program.

In 2021, the NCUA trained NCUA and state regulator users on its examination platform called the Modern Examination and Risk Identification Tool (MERIT). Credit unions will use this platform during their examinations. Credit unions can now record their meetings and the NCUA finalized a rule that added the “S” component (Market Sensitivity) to the existing CAMEL rating system. The final rule is effective for examinations starting on or after April 1, 2022.

The NCUA lists the following supervisory priorities for 2022:

  • Credit risk management
  • Cybersecurity
  • Payment products, services, and operations
  • Bank Secrecy Act (BSA) compliance and Anti-Money Laundering (AML)/Countering the Financing of Terrorism (CFT)
  • Capital adequacy and risk-based capital rule implementation
  • Loan loss reserving
  • Consumer financial protection
  • Loan participations
  • Fraud
  • London Inter-Bank Offered Rate (LIBOR) transition
  • Interest rate risk

For more detailed information regarding the above supervisory priorities and examination updates refer to this link.