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NCUA Media Advisory
Hyland Urges Continued Collaboration Between State and Federal Regulators; Discusses Key Issues
Alexandria VA, August 20, 2009 – Speaking to participants at the National Association of State Credit Union Supervisors (NASCUS) State System Summit, Board Member Hyland noted, “Over the past four years, NCUA and state supervisors have built a strong, collaborative working relationship. The dialogue and communication must continue as we work through these difficult economic circumstances.”
In her remarks about legislation to amend the member business loan rule, Board
Member Hyland stated, “The agency is currently reviewing the legislation and has
not taken an official position. Speaking for myself, however, I do believe the
statutory provisions on member business loans need to be modernized. That said,
member business loans are very different from credit unions’ typical consumer
loan book of business. Credit unions must exercise thorough due diligence in
offering member business loans. Moreover, they need to have the human expertise
and monitoring resources necessary to assure that risks in the portfolio are
being managed appropriately. I believe that statutory changes to the member
business loan provisions should authorize the NCUA to implement those changes in
stages and over a period of time to afford credit unions time to ‘walk before
they run.’”
The National Credit Union Administration is the independent federal agency that
regulates, charters and supervises federal credit unions. NCUA, with the backing
of 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 85 million account holders in all federal credit unions and the majority of
state-chartered credit unions.
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