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NCUAs Fryzel discusses alt capital CU topics
WASHINGTON (2/25/10)—The National Credit Union Administration (NCUA) believes it is up to the U.S. Congress to determine policy on alternative capital for credit unions and the agency stands ready to implement new options for credit unions if Congress decides it is needed.
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So says NCUA board member Michael Fryzel, who was among the Wednesday speakers at the Credit Union National Association’s (CUNA’s) Governmental Affairs Conference. “This is a tool many credit unions feel will help them build capital and remain competitive,” he said. “It is certainly not for all credit unions, and especially not for those struggling to remain viable.” Support for broadening sources of capital was among several issues discussed by Fryzel during the annual session. He said the NCUA was aware that the credit union commitment to the consumer was especially relevant during the current financial crisis. On the alternative capital issue, Fryzel said, “Congressional action (to authorize new capital sources) is required and NCUA has communicated to Congress that they may wish to explore giving this authority to credit unions.” He added, “..And if they do, we stand ready to implement the required guidelines to make acquiring alternative capital a safe and sound practice.” On another subject Fryzel said the NCUA’s study of existing merger criteria remains a high priority. He acknowledged credit union concerns that well-managed credit unions are not included in the merger-consideration process and are unable to grow because of that. He also noted there is some belief that the procedures used to consider merger candidates are not clear and that it results in distrust of the system. The NCUA is committed, Fryzel said, to implementing changes where needed to make the process open and competitive. Fryzel noted that one of the important missions of CUNA’s GAC was visits of credit union representatives to congressional offices. He said this was especially critical in this time of economic crisis. “..This year more than ever, the efforts you make and the progress you achieve will resonate for years to come,” he said.


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