McWatters: Enhancing dual charter system
among items to pursue in 2017

Dec. 13, 2016 -- Working with state regulators to enhance the dual-chartering system is one of 18 items identified by NCUA Board Member J. Mark McWatters that the agency could pursue in 2017 “to improve operations at NCUA and to allow well-managed credit unions greater flexibility consistent with the principles of safety and soundness.”

He listed the items in his column in the December issue of the NCUA Report, the agency’s monthly newsletter.

Meanwhile, in a separate column in the Report, NCUA Board Chairman Rick Metsger indicated that the “board briefings” that were instituted under his watch at the agency in 2016 (including one on of the Overhead Transfer Rate) would continue in the New Year, likely touching on a variety of other subjects. Among them: the wind-down of the Temporary Corporate Credit Union Stabilization Fund and the disposition of the legacy assets; NCUA’s exam appeals process; the Enterprise Solutions Modernization (ESM) program; the new online Examiner’s Guide; the Treasury Department’s Community Development Financial Institutions (CDFI) program; revisions to the payday alternative loan program, and; ways to work with NeighborWorks America to better serve community needs.

In his piece, McWatters offered the items to be tackled in no numbered order; however, his top five items on his list for next year are:

  • Determine if the risk-based capital rule, as adopted, should be revisited.
  • Reevaluate the stress-testing rule and program for the credit unions with more than $10 billion in assets.
  • Consider additional items the agency could pursue to help small credit unions better serve their members.
  • Examine what additional steps the agency could take on examiner training so that examinations are done uniformly throughout the regions.
  • Develop an improved examination-appeals process.

Other issues identified by the NCUA Board member include:  Review NCUA’s cybersecurity protocols and educate credit unions on how to address this growing issue; facilitate discussions with the credit union system to determine if we are on the right track to manage inevitable interest rate changes; atudy what NCUA should be doing to address fraud at credit unions, which may be small in scope relative to the entire system, but is an ongoing issue, and; play a greater role in working with other agencies and the Financial Accounting Standards Board to ensure credit union differences are not discounted in their rules.

See the links below for the Metsger and McWatters columns:

Metsger: Looking Back at 2016: A Year of Change to Help American Consumers

McWatters: Issues to Be Tackled in 2017