About Us

What We Do

Supervision Process

Kansas state-chartered credit unions operate under the supervision of the Kansas Department of Credit Unions (KDCU). The Department has authority to approve applications to incorporate new state-chartered credit unions and to approve mergers between credit unions. As part of the supervision process, state-chartered credit unions are required to be examined regularly by KDCU examiners to evaluate their financial condition and compliance with applicable laws and regulations. The Department's examination and supervision program has been accredited by the National Association of State Credit Union Supervisors. For the protection of credit union members' savings, all Kansas state-chartered credit unions are required to maintain federal deposit insurance administered by the National Credit Union Administration.

Examination Process

The examination process utilizes a risk-based approach which focuses on seven risk factors. With this approach, the examination will direct more time and attention towards the risk areas where more risk is perceived and less towards those risk areas where a lesser degree of risk is anticipated.

The seven risk areas (detailed on the Risk Focused Examination page) are:

  1. Credit risk
  2. Interest rate risk
  3. Liquidity risk
  4. Transaction risk
  5. Compliance risk
  6. Strategic risk
  7. Reputation risk

In addition to assessing the level of risk in these seven risk areas, the examination process also involves assigning CAMELS ratings for the areas of: Capital Adequacy, Asset Quality, Management, Earnings, Liability & Asset Management and Sensitivity to Market Risk, as well as a composite rating. The CAMELS ratings are confidential and cannot be disclosed to the public without the approval of the Kansas Department of Credit Unions.

Regular examinations are typically performed every 12 to 15 months; section 17-2206(b) of the Kansas Credit Union Act specifies an 18 month maximum. Some examinations are scheduled to be concurrent with an NCUA insurance review. Credit unions exhibiting significant weaknesses during the regular examination become subject to periodic supervision contacts between regular examinations to assess the credit union's progress in addressing the issues raised during the prior examination.