PRESS RELEASE
October 22, 2007
ARLINGTON, Va. — Representing the state system, NASCUS Chairman George Reynolds addressed the National Credit Union Administration (NCUA) Board at its Seventh Budget Briefing and Public Forum on October 22.
Reynolds, deputy commissioner of the Georgia Department of Banking and Finance, communicated the important connection between regulatory efficiency and fiscal responsibility. Maintaining a strategic focus on cooperation, education and preparedness helps ensure fiscal responsibility on behalf of the state credit union system, explained Reynolds.
“NASCUS believes regulatory efficiency is directly related to fiscal responsibility,” said Reynolds. “The way we spend our time, resources and expertise as regulators impacts how we allocate funds.”
Reynolds remarked that ongoing cooperation between state and federal regulators promotes regulatory efficiency that in turn positively affects fiscal soundness. “State regulators are committed to ensuring that the decisions made on the national policy level are practiced in the examination field,” stressed Reynolds. “The strategic discussion and collaboration between our respective agencies promotes innovation and efficiency – key elements to fiscal responsibility.”
He highlighted the value of regulator-to-regulator dialogue in the collaborative rulemaking process and for addressing emerging issues affecting state-chartered, federally insured credit unions. “During our regulator-to-regulator dialogue, we discuss specific rulemakings and what makes sense practically and fiscally for state-chartered, federally insured credit unions,” said Reynolds. “The periodic review of what’s useful in the field and what’s not eliminates regulatory redundancies and encourages the proper use of funds and examiner time.” Reynolds stressed that this dialogue will be essential as regulators continue to monitor the uncertainties in the real estate market and work to achieve capital reform for credit unions.
Ongoing and timely examiner education, a main topic of NASCUS’ comments, is a priority for both NASCUS and NCUA. Education programs must consistently be updated to reflect the changing training needs of examiners. “NASCUS believes money spent on training is invaluable and is a key element to maintaining safety and soundness of the credit union system,” said Reynolds. Reynolds encouraged NCUA to partner with NASCUS on training to promote the highest standards in examiner education.
NASCUS’ remarks also featured a serious discussion on preparedness. While collaboration, strategic discussion and education help regulators stay prepared for regulatory and operational challenges, disaster preparedness must remain a priority both at the budget and strategic planning levels. “Our actions set an example for credit unions that disaster recovery and contingency planning are priority topics,” remarked Reynolds. He also said preparedness should include contingency planning for cyber, information and technology-related failures.
NASCUS encouraged NCUA to continue to promote transparency in performing its dual role as the insurer of federally insured credit unions and the federal regulator. “We appreciate your recognition of NCUA’s distinct dual responsibilities,” said Reynolds. “NASCUS leadership welcomes the opportunity to continue meeting with NCUA to discuss these issues.”
NASCUS’ full budget briefing remarks can be downloaded on the NASCUS Web site here.
Information
Contact:
Kate Hartig, Director, Communications and Public Affairs,
(703) 528-0669 or kate@nascus.org
The
NASCUS mission is to enhance state credit union
supervision and advocate a safe and sound state
credit union system. Founded in 1965, NASCUS
represents all 48 state and territorial credit
union supervisors and the NASCUS Credit Union
Advisory Council, which is made up of nearly
500 of the nation's more than 3,400 state-chartered
credit unions.
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