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Chairman Matz's Presentation at the CUES Directors Conference

In a slideshow to nearly 400 credit union volunteers, Chairman Matz described the current status of the credit union industry and potential threats to credit unions’ future. Among the key points:

  • Credit unions are recovering steadily from the Great Recession. Positive financial trends are the result of diligent efforts by credit union boards and management, regulators, and the improving economy.

  • The landscape is shifting toward a concentration in larger credit unions. NCUA is reallocating examination resources toward the largest credit unions which pose the greatest risks to the National Credit Union Share Insurance Fund.

  • NCUA’s Regulatory Modernization Initiative has thus far reduced the regulatory burdens of Troubled Debt Restructuring, Low-Income Designations, and Fields of Membership. Consistent with President Obama’s Executive Order, NCUA continues to review rules that may be “outmoded, ineffective, insufficient, or excessively burdensome” in order to “modify, streamline, expand, or repeal them.”

  • In 2013, the NCUA Board plans to finalize several more regulatory relief proposals inspired by Chairman Matz’s 2012 Listening Sessions.

  • The top three risks facing credit unions are interest rate risk, third-party risk, and aging membership. As a result:

    1. Credit unions with high concentrations of fixed-rate real estate loans and long-term investments must have a policy to manage their interest rate risks.

    2. Credit unions must verify that third parties – including CUSOs – are in sound financial condition and meet the highest standards for underwriting and data security.

    3. The average credit union member is already past the prime borrowing ages of 25-44. Board members and management need to answer three questions that will be crucial to the future of their credit union:

      • How can our credit union reach more members in their prime borrowing years?

      • Does the younger generation know that our credit union can help secure their future?

      • How can our credit union use the technology needed to attract younger members?

      • What new media can our credit union use to reach young people?

Click here to see the slides.