Hopes that NCUA Chairman Debbie Matz' final regulatory reliefinitiative would be a return to an 18-month exam cycle were dashed Thursday in aletter to Congress.

Responding to Rep. Frank Guinta (R-N.H.), Matz said theearliest credit unions would see exam cycle reg relief would be the end of 2017. The chairman,who announced Wednesday she would leave the board effective April30, said the agency must first adjust to regulatory improvementsand build out systems and processes to support them.

“Given that the agency's 2016 exam cycle and budget are alreadyin place, there is a limited amount of organizational capacity tomake such changes at this time. The agency already has put inmotion many initiatives that would improve the examination process,which will take time and resources to complete and that would bethe critical aspects of the foundation upon which the NCUA boardmight consider extending the examination cycle,” Matz wrote in theletter.