Ito touches on wide array of topics in CU Times interview
OCT. 28, 2015 -- The relationships between regulators and the regulated, the overhead transfer rate, supplemental capital and the recently approved risk-based capital rule are all issues NASCUS President and CEO Lucy Ito addressed in an interview published this week in Credit Union Times newspaper.
The interview marked Ito’s first anniversary as president and CEO of NASCUS. Among the highlights of Ito’s comments:
- On regulator-credit union relationships – “You might think regulators and credit unions are on opposite sides, but both want safe, sound financial institutions. It's interesting to watch regulators have ‘aha’ moments when they hear from credit unions.”
- On the overhead transfer rate (OTR) -- “You see, the OTR has gone up, but at same time, the operating fee for federal charters has gone down, so it's counterintuitive,” adding that she's very pleased NCUA Chairman Debbie Matz chose to open the OTR to public notice and comment. Ito said she hopes the feedback will be taken into account during the next budget process (typically addressed in the November meeting of the board – in this case, November 2016).
- On NCUA considering supplemental capital in a future rule – “It’s a huge advance for the credit union system. Should supplemental capital come to pass for the next financial crisis, it will be a better tool for managing risk.”
- On the new risk-based capital (RBC) rule -- Despite the fact that NCUA decided voted not to include supplemental capital in its final rule on risk-based capital, the rulemaking process has been “a long, long process, and there have been some huge changes compared to what the first proposal looked like two years ago, so that's good for the system.”