The NCUA has outlined its supervisory priorities for 2026, signaling continued focus on credit risk, balance sheet pressures, fraud prevention and compliance, while pledging a more efficient and tailored examination program.
In a letter to federally insured credit unions Wednesday, NCUA Chairman Kyle Hauptman said the agency’s priorities are centered on areas posing the greatest risk to members, the industry and the National Credit Union Share Insurance Fund. The guidance is intended to help credit unions prepare for upcoming exams and is consistent with the agency’s stated policy of avoiding “regulation by enforcement.”
The NCUA said it will continue conducting defined-scope exams for most federal credit unions with assets under $50 million, while applying risk-focused exam procedures for larger institutions. Examiners are expected to adjust their focus based on each credit union’s individual risk profile.
A major emphasis for 2026 will be balance sheet management, particularly lending practices. The NCUA noted that loan delinquency rates and rolling loss rates are at their highest levels in more than a decade, increasing pressure on earnings and capital. Examiners will closely review underwriting, loss mitigation, allowance for credit losses, charge-offs and concentrations, as well as third-party risk where lending functions are outsourced.
Interest rate risk and liquidity will remain key supervisory concerns as credit unions continue to operate in a higher-rate environment. While rates have begun to decline, the NCUA said elevated funding costs and structural liquidity constraints continue to affect earnings and resilience.
The agency also highlighted operational risk, with a focus on payment systems and fraud. Examiners will assess governance, vendor management, cybersecurity and internal controls as fraud and cyber threats grow more complex.
On the compliance front, the NCUA said BSA/AML and counter-terrorist financing expectations will continue to evolve in 2026, with examiners emphasizing risk-based programs tailored to each credit union’s profile.
Hauptman said the agency remains committed to right-sized supervision that protects the Share Insurance Fund while allowing credit unions to innovate and better serve members.
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