WASHINGTON (10/31/13, UPDATED 12:50 p.m. ET)--From the anticipated range of corporate assessments, to a new stress testing proposal, National Credit Union Administration Chair Debbie Matz covers a wide spectrum of issues in the most recent edition of Inside Exchange with the Credit Union National Association's Paul Gentile.
This is Part I of a two-part "Inside Exchange" with the NCUA chair. One of the key issues covered in Part 1 is NCUA's approach with new regulations and its approach to regulating the evolving credit union system.
"We are reallocating resources to the credit unions where there's risk and those tend to be the larger credit unions. I don't see us decreasing our work force, but I see a reallocation.
"We will have more examiners focused on those credit unions and also more specialists that have expertise in capital markets and member business lending. But for the smaller credit unions they will probably have examiners in their shops for fewer hours because we're doing a reduced scope in smaller credit unions that don't have significant issues."
Matz is the only NCUA board member to serve two terms: her first back in 2002 and her most recent starting in 2009. She reflected on how NCUA has changed from her first term to today.
"The staff is so different. Eighty percent of our office directors and regional directors are in different positions…and 40% of our examiners have been with us less than five years. So the good news is we have a lot of fresh faces and fresh eyes and new perspectives," she said.
In terms of the NCUA's new proposal on stress testing for credit unions with $10 billion or more in assets, Matz said, "We are reallocating resources to the credit unions where there's risk and those tend to be the larger."
Other topics addressed in the Part I interview include stress testing, how NCUA interacts with the CFPB, examiner hours and focus, corporate assessments, NCUA's use of credit union feedback and more. Part II will concentrate on the 2014 NCUA Budget, the agency's CUSO proposal, Matz's outlook for regulatory relief and more.