Mary Martha Fortney

Looking back at the discussions, it’s clear that across the country regulators and credit unions face similar challenges including growing compliance requirements, capital issues and field of membership matters.

The most commonly discussed topic across the meetings was compliance, especially with regard to the Bank Secrecy Act (BSA) and small credit unions. With growing compliance requirements, small credit unions are struggling to survive. Often, small credit unions work with each other or merge to survive, attendees noted. Providing education and resources to small credit unions was discussed at length, but there was also debate raised about the regulator’s role in assisting small credit unions beyond safety and soundness concern.

Similarly in all regions, participants addressed regulatory burden and the importance of maintaining regulatory balance with safety and soundness. There was also a focus on regulatory flexibility, and the value of state credit union law modernization which allows credit unions to take advantage of expanded provisions.

In addition, the district breakouts included idea sharing on ways to combat predatory lending practices such as payday lending through consumer education. In one breakout, it was encouraged that states investigate provisions in state law possibly through a wild card provision to end predatory lending practices and further protect consumers.

Not unlike many discussions currently occurring throughout the credit union system, attendees spent time on the subject of data collection. Both the state and federal systems are in the middle of data collection efforts, and in the breakouts attendees speculated on what the data will show about the state credit union system.

The National Credit Union Administration (NCUA) is nearly complete with its data collection, but has not released any information as of yet. State regulators will begin collecting data on state credit unions in September. Regardless of the outcome, attendees in the breakouts agreed that regulators and the credit union industry have different roles in the process. Regulators are responsible for providing accurate and objective information, and the industry’s role is to interpret or defend the data. Discussion on this issue will certainly continue as data collection efforts move forward in the state and federal systems.

Capital was another main topic in the breakouts. Attendees discussed the benefit of a risk based capital system for credit unions, and encouraged NASCUS to continue to advance risk-based capital for credit unions in its advocacy efforts for the state credit union system.

These are just a few of the topics raised in our 2006 district breakout sessions – each group provided important perspectives on issues and moreover helped NASCUS understand the issues impacting our members. This insight is integral to advancing our advocacy efforts on behalf of the state credit union system.

I encourage you to dialogue with NASCUS staff or with other members on issues of interest throughout the year. Thanks again to the 2006 State System Summit attendees for such active participation and for making the event a valuable experience.

Mark your calendar for the 2007 State System Summit, August 9-11 in Fort Lauderdale, Florida. I look forward to seeing everyone next year, if not sooner.

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