Skip to main content

Articles

Preparing for NCUA's 2025 Supervisory Priorities

Preparing for NCUA's 2025 Supervisory Priorities

The National Credit Union Administration (NCUA) has outlined its supervisory priorities for 2025, giving credit unions a clear roadmap of what examiners will emphasize in the year ahead. These priorities highlight the importance of managing key areas such as interest rate risk, credit risk, and liquidity challenges in an uncertain economic landscape. At Accolade Advisory, we specialize in supporting credit unions by offering expertise in Asset-Liability Management (ALM), credit risk analytics, and balance sheet management, ensuring they are well-prepared for these examinations.

Key 2025 Supervisory Priorities

The NCUA’s 2025 supervisory priorities focus on:

  1. Credit Risk: Examining loan portfolio quality and underwriting practices, with a focus on risk management and how credit unions adapt to current economic conditions.
  2. Balance Sheet Management and Risk to Earnings and Net Worth: Ensuring that credit unions have robust policies and practices to address exposure to changing interest rates, with special attention to mismatches between assets and liabilities.
    1. Liquidity Risk: Evaluating liquidity management strategies, including contingency funding plans, to ensure credit unions can maintain stability during market disruptions.
  3. Cybersecurity: Examiners will continue to assess credit unions’ cybersecurity programs, emphasizing incident reporting, vendor oversight, and the importance of board-level engagement in cybersecurity governance. Tools like the Automated Cybersecurity Evaluation Toolbox are encouraged to help credit unions evaluate and improve their defenses.
  4. Consumer Financial Protection: Examiners will focus on compliance with key consumer protection regulations, including overdraft programs, fair lending practices, HMDA data reporting, Military Lending Act requirements, and Regulation E for electronic fund transfers.

For the complete details, visit the NCUA’s announcement: NCUA 2025 Supervisory Priorities.

How Accolade Can Support Your Credit Union

Meeting these supervisory priorities can feel daunting, but with proper preparation, your credit union can address examiner expectations confidently. Here’s how Accolade Advisory can assist:

  1. Interest Rate Risk Management
    • Our ALM modeling provides in-depth insights into your credit union’s exposure to interest rate changes.
    • We stress-test your balance sheet against various rate scenarios and develop strategies to mitigate risk while optimizing profitability.
  2. Credit Risk Analytics and Loan Profitability
    • Using sophisticated analytics, we evaluate your loan portfolio to identify potential vulnerabilities and forecast future credit losses.
    • We collaborate with your team to improve loan profitability and loan pricing by identifying your credit union’s unique cost to lend.
  3. Liquidity Risk Management
    • We help design comprehensive liquidity management strategies that ensure your credit union can adapt to market stresses.
    • Our contingency planning services prepare your institution to maintain financial stability under adverse conditions.

Be Prepared, Not Surprised

NCUA examinations aren’t just about compliance; they’re an opportunity to align your credit union’s risk management practices with its strategic objectives. At Accolade Advisory, we take a collaborative approach—working closely with your team to strengthen your institution’s resilience and ensure examination success.

Let us help your credit union navigate these 2025 priorities with confidence. Contact us today to start building a strategy that meets regulatory demands and positions your credit union for long-term success.

View All Blog Posts