NCUA Identifies Priorities for 2023

In its annual report, the National Credit Union Association ("NCUA") identified priorities for 2023 and reviewed agency activities from 2022.

The NCUA stated that in 2023 the agency will prioritize:

• advancing its information and cybersecurity examination programs;
• assisting credit unions in adapting to competitive challenges posed by new FinTech products, such as mobile payment systems;
• remaining aware of the "relatively weak" near-term outlook for the U.S. economy;
• helping credit units to manage interest rate risk and liquidity risk given the possibility of an economic downturn in the year ahead;
• continuing to provide technical assistance to smaller credit unions to slow the decline of membership due to small credit unions being unable to meet the technological demands typically expected of financial services providers;
• encouraging credit unions to adjust their loan types and fields of membership to help address climate-related financial risk(s);
• incorporating efficiencies into its supervisory program that address the impact of COVID-19 on credit unions; and
• making investments in human capital to support the credit union workforce by (i) offering new training and mentoring programs and (ii) fostering a diverse and inclusive environment.

The NCUA also provided an overview of the ways in which it made the following topics a focus in 2022:

• BSA/AML Compliance, by meeting regularly with interagency partners to enhance efficiency and effectiveness of BSA/AML regulation and supervision;
• Consumer Financial Protection, by reviewing credit unions’ (i) compliance with consumer financial protection-related regulations and (ii) Fair Lending Compliance Management Systems;
• Credit Risk Management, by evaluating credit unions’ underwriting standards and credit risk management standards;
• Payment System, by assessing risks associated with new payment products and services;
• Information Systems and Cybersecurity, by encouraging sound cybersecurity practices and reviewing credit unions’ information systems and assurance programs;
• LIBOR Transition Planning, by evaluating credit unions’ (i) exposure to LIBOR and (ii) related risk management processes; and
• Liquidity and Interest Rate Risks, by continuing to evaluate credit unions’ scenario analyses for liquidity risk management, especially in light of high share growth over the past two years.