NASCUS is committed to finding additional ways state and federal regulators can work together in order to strengthen and promote innovation in the credit union system.

At the National Credit Union Administration’s (NCUA) Fifth Annual Budget Briefing and Public Forum, NASCUS Chair Linda Jekel, director of credit unions for Washington state, gave an oral statement on behalf of NASCUS, which focused on the benefits of state and federal regulator partnership. She explained that state and federal regulators working together make America’s credit unions, state and federal, even healthier than they are today. After all, more than forty percent of credit unions in this country are state-chartered.

NASCUS gave examples at the budget briefing that show successful state and federal partnership. Jekel emphasized the joint efforts being made by state and federal regulators to assist affected credit unions in response to Hurricanes Katrina and Rita. The cooperative efforts among regulators in the Hurricane relief effort have been successful, and we continue to learn best practices for implementation in future emergencies.

Jekel also added that she has experienced effective federal and state partnership first-hand during the Columbia Credit Union charter conversion process. In her remarks, she explained that the federal and state regulators worked well together to examine and determine whether the methods and procedures of the credit union charter were fair and legal. This type of consultation and cooperation is essential to ensure state-chartered credit unions receive the best in public policy and regulation.

Further, Jekel cited the NCUA Inspector General Report “NCUA’s Process for Reviewing Federally Insured State Chartered Credit Unions,” dated June 8, 2005 which includes a recommendation that NCUA consider using NASCUS’ Accreditation Program to better leverage state examination resources. This demonstrates yet another way federal and state regulators can effectively partner to ensure deposit insurer resources are used wisely. Great things are possible when state and federal regulators work together.

NASCUS is dedicated to advancing the partnership between state and federal regulators in the coming year. As Jekel stated in the NASCUS remarks at the briefing, NASCUS plans to update and further refine the Document of Cooperation. The agreement reflects the commitment we share in making an even stronger credit union system. Jekel has made it one of her priorities as NASCUS Chair to sign an updated Document of Cooperation. She shared that the document serves as a reminder that we share a common goal and the importance of cooperation and consultation.

NCUA and state regulators are the stewards that ensure safety and soundness of the credit union system. Together, we take steps to make sure that credit unions remain viable and that they have regulators enabling them to grow and better serve their members. NASCUS will continue to seek and find ways for state and federal regulators to partner and advance the viability and efficiency of the credit union system.