I've got to disagree with the conventional wisdom expressed by publisher Mike Welch in his recent column on RegFlex (CU Times, May 10.) Theoretically, it sounds great. In reality, however, what might actually happen could be quite different. CAMEL ratings are all numerically calculated, except for management. The "M" is the only subjective score. Because of that, you may find NCUA examiners who hand out a "2" with regularity, but never a "1." The conversations in some credit unions goes like this: "You have to walk on water to get a "1." Some credit unions have found that the more they go nose-to-nose with the supervisor, the lower the CU's score seems to fall. It would be a shame if the passage of RegFlex is accompanied by a mysterious deflation in management scores, as some have already predicted. If there is a surprisingly higher number of "3" credit unions, making them ineligible for RegFlex, then those making the prediction would sadly be proven right. It bears watching. George Scheeler President & CEO Matcom FCU
Some thoughts on RegFlex
Comments
- CAMEL Disclosure: Matz Says N.C. Regulator ‘Violated the Trust’
- CAMEL Disclosure: Former Examiner Says Ratings Release 'Stupid'
- CAMEL Disclosure: Cheney Urges NCUA, N.C. Resolution
- CAMEL Disclosure: N.C. League Says Dual Exams 'Harsh, Unnecessary'
- CAMEL Disclosure: N.C. NCUA Exams Called 'Tempest in a Teapot', 'Blitzkrieg'
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