CUNA News Now: NCUA will respond to exam ‘temperance’ letter

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WASHINGTON (11/9/09)--The National Credit Union Administration (NCUA) will respond with a letter this week to Rep. Barney Frank's (D-Mass.) request that federal regulators "show some temperance" during their examinations of financial institutions, NCUA Director of Public and Congressional Affairs John McKechnie told News Now.

In a letter sent to NCUA Chairman Debbie Matz and the other federal financial regulatory leaders, Frank and co-signer Rep. Walter Minnick (D-Idaho) asked for the regulators to take a temperate approach to examinations so financial institutions "can continue to lend money to help the economy improve."

The legislators criticized seemingly tightening capitalization standards that have forced some financial firms to restrict their lending practices, and noted that CAMEL ratings should give greater weight to an institution's liquidity and core earnings instead of focusing so closely on asset quality.

"While our regulators need to uphold safety and soundness standards in this difficult economy, unnecessarily aggressive decisions made in the field by individual examiners or teams" that require capital in excess of the "official regulatory standard" for being well capitalized "must be avoided" to prevent unnecessary failures.

"We are calling upon you to take the long view" and to use "wisdom and experience" to to guide field staff, Frank and Minnick wrote.



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	News Now LiveWire NCCUL and WOCCU met with Romanian CUs this week. The CUs are experiencing growth and want to increase their public relations efforts. 3 days ago Kent Buckham has been named by NCUA as director of the newly created Office of Consumer Protection. The 7-person dept. launches in Jan. 3 days ago Reg E gift card rule proposed by Fed. Would implement Credit CARD Act requirements that are effective Aug. 22. http://tinyurl.com/yh9eats 3 days ago AOL's Walletpop advises "fee-weary consumers" to find a credit union, points them to CUNA's online CU locator: http://tinyurl.com/ydsjlvr 3 days ago NCUA approved 2010 OTR of 57.2 percent 4 days ago Sign up; more tweets... NCUA will respond to exam 'temperance' letter WASHINGTON (11/9/09)--The National Credit Union Administration (NCUA) will respond with a letter this week to Rep. Barney Frank's (D-Mass.) request that federal regulators "show some temperance" during their examinations of financial institutions, NCUA Director of Public and Congressional Affairs John McKechnie told News Now. In a letter sent to NCUA Chairman Debbie Matz and the other federal financial regulatory leaders, Frank and co-signer Rep. Walter Minnick (D-Idaho) asked for the regulators to take a temperate approach to examinations so financial institutions "can continue to lend money to help the economy improve." The legislators criticized seemingly tightening capitalization standards that have forced some financial firms to restrict their lending practices, and noted that CAMEL ratings should give greater weight to an institution's liquidity and core earnings instead of focusing so closely on asset quality. "While our regulators need to uphold safety and soundness standards in this difficult economy, unnecessarily aggressive decisions made in the field by individual examiners or teams" that require capital in excess of the "official regulatory standard" for being well capitalized "must be avoided" to prevent unnecessary failures. "We are calling upon you to take the long view" and to use "wisdom and experience" to to guide field staff, Frank and Minnick wrote. Resource Links Frank, Minnick Letter More Washington
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