NCUA CHAIRMAN JOHNSON
DECLARES “NEW DAY AT THE NCUA”
Chairman Johnson Highlights the Important Role of
America’s Community Credit Unions in Providing Access to Affordable Financial Services
Boston, MA (October 24, 2005) – In an address before the seventh annual conference of the National Association of Community Credit Unions, National Credit Union Administration (NCUA) Chairman JoAnn Johnson announced a renewed focus and vision for the NCUA and America’s credit unions as the Board is expected to be at full complement upon Senate confirmation of Rodney E. Hood and Gigi Hyland.
“I will be extremely pleased to welcome these two bright and well qualified individuals to the Board,” said Chairman Johnson. “With the Board at full complement, I expect to be able to move forward with a number of initiatives and regulatory flexibility measures to enable the nation’s credit unions and enhance their ability to provide communities with partners they can depend on for affordable financial services. I believe a new day at NCUA is on the horizon.”
Chairman Johnson commended community-chartered credit unions for the continued service in communities that need access to credit unions. “The growth of federal credit unions that are community-chartered has increased from 8% in 2000 to 19.7% today. Credit union service in these communities, especially the many underserved areas across America, is making a difference every day in the lives of your members.”
Thus far in 2005, the agency has approved 112 community charter applications, and the NCUA Board is expected consider four conversion applications at the November board meeting.
Other priorities the Chairman outlined were the agency’s focus on enhancing the federal charter; efforts for a statutory change in Congress to permit risk-based capital for credit unions; lowering the RegFlex qualifying net worth ratio from 9% to well-capitalized level, currently 7%; and an agency focus on mitigating risk and assisting credit unions in addressing risk factors.
The National Credit Union Administration is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, backed by the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of over 84 million account holders in all federal credit unions and the majority of state-chartered credit unions.
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