As 2005 draws to a close, it’s time to look back and ahead. This is usually the time for such reflections. State credit union regulators formed NASCUS in 1965 to ensure the safety and soundness of state-chartered credit unions. As each year passes, NASCUS continues to expand its advocacy for the state credit union system.

In 2005, NASCUS made significant progress toward its goals. NASCUS remains committed to strengthening state regulatory agencies, growing our resources for state regulators and representing the voice of state regulators and the state system before Congress and to federal agencies. The advances made in 2005 could not have been accomplished without the continued support of the dedicated NASCUS Boards and committees, state regulators, the Credit Union Advisory Council and NASCUS management.

2005 Highlights

This past year is one that continued to bring change. NASCUS updated our bylaws and organizational policies resulting in a reorganized membership—changes that are a step forward for NASCUS. First, the NASCUS Credit Union Council changed to the Credit Union Advisory Council reflecting the long-standing principle that NASCUS is a regulators association with credit union members as advisors and associates. The NASCUS Credit Union Advisory Council serves as an important conduit for the industry to ensure that state-chartered credit union issues and needs are being communicated to and recognized by state and federal regulators.

The former Foundation for Dual Chartering members were folded into the Credit Union Advisory Council as Dual Chartering Benefactor (DCB) members. NASCUS DCB members are state credit union leagues, law firms dedicated to credit unions, national credit union trade groups, federal credit unions and credit union share insurers.

The NASCUS management team also expanded in 2005. Nancy Mosely was added to the staff as Office Manager and Kate Hartig joined as Director of Communications. Tammy Gentillini was hired as State Programs Coordinator in early 2005. Barbara Pogue was promoted to Vice President of Corporate Affairs and Accreditation and Isaida Woo to Director of Board and Member Relations. As the year ends, NASCUS’ management team was the largest it’s ever been.

The NASCUS Accreditation Program continued to serve as a benchmark for regulatory excellence in 2005. Now, eighty percent of all state credit union assets are supervised by NASCUS’ 28 accredited agencies. Eight state agencies were re-accredited and we are preparing for the re-accreditation of nine other states, and continuing to encourage other states to become accredited.

Communications continues to be imperative for NASCUS. NASCUS launched a new Web site design in August to bolster our online resources and provide timely information for our members and the state-chartered credit union community. We updated and redesigned Facts from Washington. We developed a new publication, The Regulatory Crier in 2005 to inform and educate members on state examination and operational credit union issues.

In addition, training and educational opportunities for the NASCUS membership expanded in 2005. Webinars were held throughout the year and we produced more than half a dozen schools and seminars for our members. Among the schools, NASCUS held two BSA training schools and two member business lending schools in 2005.

NASCUS was successful in influencing state credit union legislative affairs in 2005. We testified before the Financial Institutions Subcommittee of the U.S. House of Representatives three times in 2005, emphasizing the legislative priorities of state regulators and state-chartered credit unions.

NASCUS also testified before Congress and the Senate on Hurricane Katrina relief efforts and the financial industry response to the disaster. NASCUS and state regulators in partnership with federal agencies and the financial services industry worked together to help affected institutions and consumers following Hurricanes Katrina, Rita and Wilma.

NASCUS was active on the state legislative level. NASCUS continues to work with the National Conference of State Legislators (NCSL) on the preservation of dual chartering and to speak from the regulator perspective concerning state credit union modernization laws. NASCUS testified in the Ohio House of Representatives in support of its credit union modernization law in 2005.

In June 2005, the NASCUS Alternative Capital Task Force published a white paper titled “Alternative Capital for Credit Unions … Why Not?” NASCUS will continue to educate the credit union community, Congress and federal agencies about the importance of access to alternative capital for credit unions.

The NASCUS Regulatory Affairs department was also active this year. The NASCUS Regulatory Affairs department became a definitive BSA compliance resource for state regulators and state-chartered credit unions. NASCUS will grow its BSA resources in 2006 and continue training on the topic.  

Looking at 2006 and Beyond  

The New Year brings new advocacy opportunities and challenges for the state system. NASCUS priorities for 2006 include ongoing work to preserve the dual chartering system, to minimize federal preemption, to strengthen state regulatory agencies and to ensure that our members are prepared for future challenges.

NASCUS will maintain its cooperative relationship and partnership with federal agencies, including the National Credit Union Administration (NCUA). NASCUS will continue to collaborate with the NCUA on issues of importance to the state-chartered credit union community including charter conversions and new proposed rules.

Taxation issues will be closely watched by NASCUS in the coming year. NASCUS will continue its efforts on Unrelated Business Income Tax (UBIT) issues with the credit union community as a member of the UBIT Steering Committee.

In 2006, NASCUS will offer expanded educational programs featuring more than 15 educational opportunities in addition to NASCUS’ Online University for state examiners.

Similar to 2005, NASCUS will increase interaction with regulators and our Advisory Council members to continue information sharing on important matters. We will continue to promote the value of the dual chartering system and the innovation it brings. We will continue to defend the rights of states to be different from their federal counterparts.

Through the continued efforts and dedication of a committed management team and with the guidance and assistance of the NASCUS boards, we will continue to advocate for a safe and sound state credit union system.

The NASCUS staff and I wish you the happiest of holidays and a wonderful New Year.

Sincerely,

To view the Special Message from the President and CEO Archive, click here.