WASHINGTON (4/14/14)--Until the risk-based capital plan was issued, Lou Gill, secretary and director of Chartway FCU, was happy to let his credit union's CEO take the lead on comment letters that addressed regulatory proposals. But this time it's different. Very different.
As a volunteer elected credit union official representing over 180,000 members, I have a responsibility to comment on this RBC proposed regulation because, if approved as written, it will change the future credit unions--and not for the good Gill agrees with CUNA and most credit unions that the industry needs a "smart and thoughtful" risk-based capital plan.
However, he also agrees this proposed regulation "is simply not it." The Virginia Beach, Va. credit union official says his review of the NCUA's 196-page plan showed the proposal would impede Chartway's ability to be competitive in the marketplace in providing sound and safe member financial services.
"Member/consumer lending, mortgage lending and the use of our collaborative CUSO (credit union Service organization) will all be impacted. Our credit union may be forced to reduce dividends on member shares and CDs. Traditional ALM/ALCO (Asset Liability Management/Asset Liability Committee) strategies will be replaced with the new proposed regulatory balance sheet requirements, adversely affecting all of our products."
Please, Gill urges all credit union representatives, work with your CEO, use CUNA's website (see resource link below) to provide NCUA your concerns and suggestions, share your comment letter with your federal lawmakers--before the May 28 deadline elapses.