COEUR D'ALENE, Idaho (9/23/13)--Regulatory capital and protection of the state credit union charter were among the topics discussed Thursday at the National Association of State Credit Union Supervisors State System Summit in Coeur D'Alene, Idaho.
Thursday's sessions featured the Annual NASCUS Interagency Dialogue--one of two annual sessions where state regulators and the National Credit Union Administration board, NCUA regional directors and federal examiners meet to collaborate and share information on critical supervisory issues facing credit unions.
"This session highlights the critical partnership between states and the NCUA," said NASCUS Chairman John Kolhoff, director, Office of Credit Unions for the state of Michigan.
NASCUS credit union members joined NASCUS President Mary Martha Fortney to discuss issues affecting state credit unions. Attendees were particularly concerned about supplemental capital, preserving state authority and protection of the state credit union charter.
The day closed with a session on the future of regulatory capital, featuring panelists Michael Scanlon, partner at K&L Gates, and Steve Farrar, NCUA loss/risk analyst.
Credit unions that make consumer loans will be happy with the proposed risk-based rule, Farrar said. The top risk-weighted capital requirement would be comparable to the banks' risk-weighted requirement of 10.5%, he added.
While the exact publication date of the proposed rule was subject to the NCUA board approval, he anticipated a final rule would be published in 2014, with an ultimate effective date of 2016.
Farrar also discussed NCUA's modeling of the agency's risk weightings. Ninety percent of U.S. credit unions were well-capitalized under the risk-based proposal, he said. NCUA will also provide an application on its website when the rule is proposed that will allow credit unions to run their numbers to model their risk-weighted requirement under the rule, he said.
Friday's session featured an update from NCUA board member Richard Metsger, a director compensation dialogue, an overview of cybercrime emerging information technology trends insights and predictions for financial services for 2014.
Earlier in the week, Bill Cheney, president/CEO of the Credit Union National Association, appeared as part of a panel titled "Working Together on System Priorities: The Credit Union Leadership Forum. Cheney reiterated CUNA's commitment to reducing regulatory burden for credit unions. He also stressed the importance of a key NASCUS priority--keeping the state charter strong and preserving the dual chartering system.