NCUA Reaching Out to Credit Unions to Identify Emerging Credit Risks

In a letter, the NCUA says examiners will be contacting credit unions between May 4 and 18 as follow up to their initial outreach.

Credit unions should be ready to respond to a series of questions to update the agency on their operational status and liquidity, as well as new questions to help identify emerging credit risks. The request for information now includes questions on loan forbearance, participation in the Paycheck Protection Program, and emergency, unsecured loans and other topics related to COVID-19.

The NCUA says the information is important as it will help guide the development of needed assistance by helping the agency understand the challenges credit unions are facing. The NCUA says credit unions have provided information that has led to valuable insights on a variety of topics, such as:

Operational Status – Almost all credit unions report full or partial service to members. A few credit unions that have closed locations due to their sponsors being closed (including school districts and churches, among others) are continuing to serve their members’ needs on an appointment basis.
Lobby Service – Many credit unions noted their lobbies are generally closed, but the vast majority are offering lobby appointments. Credit unions that are not offering lobby appointments are providing services using a drive-thru or offering appointments at another location.
Liquidity Planning – Few credit unions report a need to increase borrowings.

The NCUA says it has also been monitoring the impact of COVID-19 on credit unions through information provided by corporate credit unions, other financial service providers, and other government agencies.