NCUA Releases Supervisory Priorities for 2024

NCUA has released its supervisory priorities and other updates to the agency’s 2024 examination program. The agency says it is focused on the areas posing the highest risk to credit union members, the credit union industry, and the National Credit Union Share Insurance Fund (Share Insurance Fund).

The credit union system over the last year has remained largely stable in its performance and relatively resilient against economic disruptions. However, during 2023, the NCUA observed growing signs of financial strain on credit union balance sheets. The rise in interest rate and liquidity risks resulted in an increase in the number of composite CAMELS code 3, 4, and 5 credit unions. Inflation and interest rates are affecting household budgets, which could lead to an increase in credit risk in future quarters. Economists are also forecasting an economic slowdown as the lagged effects of elevated interest rates take hold.

Each of these developments could affect credit union performance, create challenges for consumers, and pose a risk to the Share Insurance Fund in 2024.

Read the Letter to Credit Unions