At 40, NASCUS Reflects on State System’s Growth A special message from Mary Martha Fortney, President and CEO - August 25, 2005 State credit union regulators formed NASCUS in 1965 to ensure the safety and soundness of state-chartered credit unions. In the past 40 years, state-chartered credit unions experienced impressive growth and innovation, while retaining their core values of member ownership and service.
Innovation in the state system has been a product of both change and continuity. In a dual role, regulatory agencies serve as engines for advancement and innovation, as well as protectors of safety and soundness of credit unions undergoing change.
Regulatory Agency Role in Growth
State regulatory agencies have played a key role in the improvements and growth of the state credit union system in the past 40 years. By working together, state regulatory agencies were able to share best practices throughout the system. State regulatory familiarity allowed for widespread innovation including expansion of services such as checking accounts, credit cards and mortgage and business lending – all now commonplace in credit unions.
NASCUS also has partnered with state regulatory agencies to strengthen and foster efficiency. NASCUS adopted the Accreditation Program in 1989 to administer and assure the quality standards of states’ credit union examination and supervision.
Today, eighty percent of state-chartered credit union assets are supervised by NASCUS’ 28 accredited states. The scope of the accreditation review and the intense scrutiny accredited agencies undergo through self-evaluation and objective peer review have promoted a standard of excellence in the state system, and a solid foundation for the continuation of safe and sound growth.
NASCUS also helped further regulatory efficiency by enabling dialogue between the regulator and the regulated. The addition of Credit Union Advisory Council members to NASCUS proves that dialogue between these two groups is critical to understanding credit unions’ regulatory concerns and communicating business place realities faced by credit unions.
System Change and Continuity
The credit union began from a simple concept; people bringing their money together to loan to each other. Today’s credit unions are characterized by change and continuity, adjusting to the demands of a modern marketplace and sophisticated credit union member but also maintaining their core values.
Forty years ago, credit unions nationwide numbered around 20,000. Since then, the number has been cut by more than fifty percent, to around 9,000. Share insurance provider numbers have also dwindled to three. But, while the number of credit unions decreased, state-chartered credit union assets and membership continue to grow. Five years ago, the largest state-chartered credit unions’ assets ranged between $3-6 billion. Today, the largest state-chartered credit unions’ assets range between $10-12 billion. And growth is on the rise, as many consumers are using credit unions as their primary financial service providers.
With change, however, the state credit union system has not lost its defining characteristics. Whether a credit union is large or small, “complex” or not, its defining corporate structure remains unchanged. As member-based service organizations, they are dedicated to the needs of their members and to maintaining regulatory standards of excellence.
40 Years of NASCUS
The continued state system growth has prompted changes in NASCUS as well. Our staff has grown from two to nine, with departments managing legislative and regulatory affairs, education and training, accreditation and communications.
Throughout all the change in both the state system and in NASCUS, our mission remains the same – to enhance state credit union supervision and advocate for a safe and sound state credit union system. NASCUS will remain a resource for state regulatory agencies and continues to represent the interests of the independent and autonomous state regulatory system before Congress. We will strive to improve the supervisory skills of credit union supervisors through ongoing education, and listen to the concerns of our members and provide them with the information and guidance they need to make the supervision of credit unions effective and efficient. We will also protect the dual chartering system and the state charter choice.
NASCUS will continue to strengthen state regulatory agencies and advocate for the continued safety and soundness of the state system. NASCUS thanks those who have made NASCUS the organization it is today. We look forward to another 40 years of advocacy, innovation and success in the state-chartered credit union system.
National Association of State Credit Union Supervisors
1655 North Fort Myer Drive; Suite 300; Arlington, VA 22209
Phone: (703) 528-8351; Fax: (703) 528-3248
