Frequency of Credit Union Examinations

PURPOSE: This rule sets forth the frequency of credit union examinations and the factors the director may consider when determining the frequency of credit union examinations. (1) The director of the Division of Credit Unions, or the director’s agents, may examine a credit union at any time and shall have free access to all books, papers, securities, and other sources of information pertaining to the credit union. (2) Qualifying credit unions, as determined by the director, shall be examined no less frequently than every eighteen (18) months. All other credit unions shall be examined annually. (3) The factors the director may consider, when determining whether or not a credit union may qualify for examinations less frequently than annually, may include: (A) The credit union has been in operation for ten (10) years; (B) The credit union has not been operating under a Net Worth Restoration Plan or Letter of Understanding and Agreement within the preceding twelve (12) months; (C) The credit union has not been operating under an administrative order within the preceding twelve (12) months; (D) The credit union has not experienced major changes in its balance sheet structure within the preceding twelve (12) months; (E) The credit union has maintained a positive return on average assets; (F) The credit union has not implemented any new programs with high risk to its balance sheet within the preceding twelve (12) months; (G) The credit union has a net worth ratio of greater than seven percent (7%); (H) The credit union has implemented an adequate asset liability management mechanism; (I) The credit union has maintained accurate and current books and records; (J) The tenure and quality of the credit union’s management; (K) General economic conditions. AUTHORITY: section 370.120, RSMo Supp. 2002.* This rule originally filed as 4 CSR 100-2.005. Original rule filed Aug. 29, 2002, effective Feb. 28, 2003. Moved to 20 CSR 1100-2.005, effective Aug. 28, 2006. *Original authority: 370.120, RSMo 1939, amended 1945, 1945, 1949, 1955, 1959, 1972, 2002.