June 21, 2018

NASCUS PRESIDENT AND CEO LUCY ITO
ON NCUA’S FINAL RULE CONCERNING MERGERS 
AND ENTERPRISE SOLUTION MODERNIZATION INITIATIVE

‘Voluntary mergers are business decisions, not insurance nor safety and soundness matters’;

‘State regulators have valuable experience in examination systems’

The NCUA Board today finalized a rule amending the procedures and timeframes that federally insured credit unions, including federally insured, state-chartered credit unions (FISCUs), must follow for voluntary mergers with another credit union.  The board also heard a report on its Enterprise Solution Modernization initiative (ESM).

NASCUS President and CEO Lucy Ito issued the following statements in response to today’s developments: 

  • On the voluntary mergers rule (which also expands the scope of compensation that must be disclosed, despite FISCU compensation disclosures in Form 990s):

"We are disappointed that NCUA didn’t heed the recommendations in our comment letter but is instead choosing to add more burden to state-chartered credit unions, which already practice full transparency and disclose compensation in Form 990s,” said Ito.  “Voluntary mergers between healthy, well-managed credit unions are a business decision, not an insurance nor safety and soundness matter. State regulators, as chartering authority, already set state charters' disclosure requirements. NCUA is duplicating the role of state supervisory agencies (SSAs), which is counter to efforts to reduce regulatory burden and to limit unnecessary redundancy."

  • On the progress of the agency’s ESM: 

“While I applaud NCUA’s efforts to modernize its infrastructure, I am concerned that NCUA did not mention partnership or consultation with SSAs on the ESM project,” Ito continued. “State regulators have valuable experience in examination systems other than AIRES and stand ready to help inform this critical initiative which will impact both federal and state systems.”

Information Contact:
Shelton Roulhac, Vice President, Communications, sroulhac@nascus.org  or (703) 528-5974

The National Association of State Credit Union Supervisors (NASCUS) is the primary resource and voice of the state governmental agencies that charter, regulate and examine the nation’s state-chartered credit unions. NASCUS membership is made up of state-chartered credit unions, state regulators and other supporters of the state credit union system. NASCUS is the only organization dedicated to the defense and promotion of the state credit union charter and the autonomy of state credit union regulatory agencies.