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Chairman JoAnn Johnson’s Statement on Today’s Board Meeting Agenda Items

On chartering and field of membership amendments, IRPS 06-1

 June 22, 2006, Alexandria, Va. -- The final rule on underserved areas represents the Agency's recognition of the fundamental responsibility of credit unions to reach out to consumers in underserved communities, while at the same time acknowledging the statutory constraints that allow only multiple group credit unions to do so. 

 I believe that Congress in 1998 attempted to empower, not restrict, credit unions in their efforts to reach out to consumers, and I strongly encourage Congress to address this apparent inconsistency in current law.  To fail to act expeditiously and decisively would send a message that Americans who live in underserved communities do not deserve broad access and choice in financial services, and that would be unfortunate. 

Revised Chartering and Field of Membership Policy IRPS 06-1 is available online at http://www.ncua.gov/RegulationsOpinionsLaws/RecentFinalRegs/final_regs.html

On the conversion proposal

June 22, 2006, Alexandria, Va. -- NCUA's proposed rule on credit union conversions to another charter type addresses an issue that has become increasingly contentious. That contention has sometimes obscured the simple issue at the heart of the matter: consumer protection. 

This new rule, if adopted, would improve and strengthen the ability of consumers to make informed choices about the institution that they own, simplify and clarify the types of information available, streamline the voting process and enhance communication between and among members. All of this adds up to better safeguarding of member rights to decide what kind of financial institution charter best suits their needs. I look forward to hearing all responsible points of view on this important matter. 

The conversion proposal is available online at http://www.ncua.gov/RegulationsOpinionsLaws/proposed_regs/proposed_regs.html.
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 the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of nearly 85 million account holders in all federal credit unions and the majority of state-chartered credit unions.