NCUA on the Hill; About Face

 Posted by Anthony Demangone 

Yesterday, NCUA Chair Debbie Matz was on the Hill to testify on the state of the credit union industry.  You can listen to her testimony here.  She stated again, for the record, that NCUA is giving credit unions one bite at the apple to fix issues uncovered by an exam.  If the credit union in question does not fix the issue within 90 to 120 days, NCUA will escalate its enforcement action.  If there is a "Doubting Thomas" at your credit union who does not understand the importance of correcting issues uncovered by an exam, have them listen to her testimony - specifically at the 26 minutes and 25 second mark. Also of interest from her testimony:

•  NCUA is creating a quality control program that will attempt to make the exam process more accurate and uniform, regardless of region.  If the program is successful, NCUA would address a common complaint made by credit unions - that exams vary by region or based on the examiner inconsistencies. 
• NCUA will issue a concentration risk regulation next year for natural person credit unions. 

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Boy, you learn something new each day.  The Fed has announced that as of April 1, 2011, Federal Reserve Banks will accept "unfaced currency" in the $1 to $20 denomination range.  

As such, as of April 1, 2011, the Federal Reserve Banks will begin accepting unfaced deposits in the $1-$20 denominations. This means your institution will no longer be required to face all notes portrait side forward when preparing a deposit of $1-$20 denominations. In addition, sometime thereafter, we will begin filling orders unfaced in the $1-$20 denominations, depending on the inventory levels of faced notes at each Federal Reserve office....Please note, facing requirements for deposits of higher value notes ($50-$100 denominations) will not change. As such, we will continue to require that all deposits of $50s and $100s be submitted faced and all orders for these denominations will be filled with faced currency. This, along with all other deposit packaging requirements contained in OC 2 and the CSMOP will continue to be strictly enforced.

Really?  You have to line up bills the right way for the Fed to accept them as a deposit? I had no idea. And please tell me that someone figured out how to automate that process.

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Have a great weekend, everyone!

Comments

[Darla G]

Back in the day (way back) when I was a young teller, we were required by the bank/CU to have all our bills face up AND all facing the same direction. To this day, I organize the money in my purse this same way. I can't stand to have it facing all different directions. Old habits, old dog...

[Anthony Demangone]

I had no idea!