NASCUS Discusses State Authority, Supplemental Capital, Examination Efficiencies and More at Defense Credit Union Council's Golden Anniversary Conference
August 14 - NASCUS' President and CEO Mary Martha Fortney discussed NASCUS' priorities at the Defense Credit Union Council's Golden Anniversary Conference.
"NASCUS will always remind NCUA to defer to state authority wherever possible and to reserve rulemaking for only the most material safety and soundness issues," said Fortney. "NCUA's recent loan participations and troubled condition final rules demonstrate that NCUA seriously considered the concerns voiced by NASCUS and state regulators and amended the proposals accordingly, " she added. To further improve the deliberative process at NCUA, NASCUS is evaluating the benefits of seeking an amendment to the FCUA to include the designation of a seat for a former state regulator, similar to how the FDIC Act was amended to included state representation in the mid 1990s. Ms. Fortney further explained NASCUS is also advocating for the expansion of the NCUA board from 3 to 5 seats for many reasons including increased opportunity for dialogue, coalition building and productive debate.
Ms. Fortney also discussed NASCUS current work including the continued advocacy for credit union capital reform. She explained that a decade ago, NASCUS recognized that regulatory capital levels would likely increase in the future, and began discussing with Congress, Treasury and credit union leaders the need for modernization of the credit union regulatory capital system. Today, there is broad support within the system, and now from NCUA, to bring natural person non-low income credit unions on par with every other credit union and depository institution in the developed world by allowing access to additional forms of capital.
Ms. Fortney concluded her remarks by discussing NASCUS' Examination Efficiencies initiative. She explained that NASCUS is working with state regulators and NASCUS credit union members on identifying best practices and developing increased efficiencies in the examination programs across the states."NASCUS thanks the Defense Credit Union Council for the opportunity to raise awareness of the issues impacting the state system today," said Fortney