The pilot will test three examination approaches:

• Alternating lead. In this program, the NCUA and state regulators will conduct joint examinations, alternating which agency serves as the lead.
• Alternating with limited participation. In this test, the NCUA will alternate conducting examination with some involvement from the other agency.
• Alternating. In his pilot, the NCUA and state regulators will alternate conducting examinations entirely.

The NCUA announced that the six participating state regulators are the California Department of Business Oversight, the Florida Division of Financial Institutions, the New Hampshire Banking Department, the Oklahoma State Banking Department, the South Carolina Office of the Commissioner of Banking, and the Texas Credit Union Department.

The state examiners and NCUA have chosen the credit unions to participate in the pilot program.

NASCUS President/CEO Lucy Ito said she was thrilled by the announcement.

"We have found the State Supervisor-NCUA working group to be extremely productive and are thrilled about the upcoming launch of the pilot," she said. "Alternating examinations have the potential to reduce supervisory burdens on credit unions, diminish the wear and tear of examiners' road time, and preserve limited agency budgets. NASCUS applauds the participating state supervisory agencies and NCUA for their willingness to test a new approach that could positively impact both federally insured, state-chartered credit unions and the agencies that supervise them."