The National Credit Union Administration Should Revise Liquidation Procedures to Reduce the Net Cost of Credit Union Liquidation

摘要

The number of liquidations that must be performed by NCUA has increased sharply in recent years. Reducing the net cost of liquidations is clearly one policy the NCUA Board can pursue to enable the share insurance fund to better cope with the strains that may lie ahead. Although NCUA has made recent efforts to reduce the cost of liquidations, GAO believes more needs to be done. NCUA could reduce the net costs of liquidation by maximizing the value of the loan portfolio and reducing expenses. In addition, GAO believes more active NCUA supervision is needed to insure compliance with policies intended to reduce the net cost of liquidations.