ALBANY, N.Y. (2/17/11)--New York’s Corporate Credit Union Services Task Force submitted its recommendations for Members United Bridge Corporate FCU to the Credit Union Association of New York’s board of directors after months of research and meetings. Primary on its list was a recommendation that New York’s credit unions support a reconstituted charter for the bridge corporate and an endorsement of the Members United “Forward Together” plan as the business model for the reconstituted corporate. The task force, which included 27 New York credit union leaders, was established by the association’s board of directors. Task force members were charged with finding a cost-effective solution/strategy for providing essential services that historically have been offered to credit unions by corporate credit unions. Additional recommendations that have been accepted and supported by the association’s board include:
* Advocating for a credit union-owned corporate credit union system that follows the general business model of a corporate credit union as set forth by the final corporate regulation, 704; * Supporting general consolidation/mergers within the corporate credit union system that would enhance Members United Bridge’s long-term strength and viability, in turn bringing more efficiencies and lower cost to natural person credit unions; and * Encouraging the use of non-perpetual membership capital, whenever possible, under the new corporate regulations.
The task force also concluded that each natural person credit union should conduct its own due diligence regarding future corporate credit union services and make a decision based on the best interest of the members it serves. The association said it will continue to monitor developments and pursue the most favorable options for New York credit unions and their members. “Using the recommendations developed by our Corporate Services Task Force, we look forward to working with the Credit Union National Association, the National Credit Union Administration and other key parties to shape a corporate credit union system that will provide long-term benefits and stability,” said association President/CEO William J. Mellin. To read the report, use the link.