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Association Hosts Town Hall with NCUA Regional Director About Supervisory Priorities

Over 90 attendees heard from NCUA Eastern Regional Director John Kutchey about what to expect during the examination process.

Kutchey outlined the NCUA’s key areas of focus for this year:

• Interest Rate Risk
• Liquidity Risk
• Credit Risk
• Fraud Prevention and Detection
• Cybersecurity
• Consumer Financial Protection

He said examiners will be taking a closer look at overdraft programs, so credit unions should be prepared to share the following:

• Overdraft policies, procedures and member disclosures
• Routine monitoring reports, reviews and audits of overdraft programs
• Website advertising
• Balance calculation methods and settlement processes
• Adjustments made to address compliance risk and potential consumer harm from unanticipated overdraft fees

Kutchey also shared that the NCUA will also implement a new management questionnaire designed to enhance the identification of fraud red flags, material supervisory concerns or other potential risks. The questionnaire will be sent to credit unions in the pre-exam planning stage.

For more details about the NCUA’s 2023 Supervisory Priorities, click here.

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