Cutting through red tape: Bacino's proposed advisory council

WASHINGTON-Since CUNA's Governmental Affairs Conference (GAC), NCUA Board Member Geoff Bacino has been taking steps to create the advisory council he proposed in his remarks. The purpose for the NCUA/Credit Union Advisory Council is to discover how the agency can better relate with the credit unions it regulates. Bacino said that he has received the approval of his fellow board members and strong support from the credit union community as a whole. The idea has even brought agreement between the sister trade associations CUNA and NAFCU who echoed each others remarks that increased communication between the regulator and the credit union movement is good for the industry. With such strong board members, spokespersons from both groups also added that there is no danger of the regulators being "manipulated." The only obstacles that stand in the council's way appear to be bureaucratic in nature. NCUA's Office of General Council is going back and forth with the White House Office of General Council to ensure all the i's are dotted and the t's crossed. Bacino hopes the process will be completed during this calendar year, but would not go beyond saying, "hopefully soon." Bacino admitted that his plan would have a budgetary impact, but it would be "minimal." There are no funds allocated in this years budget for the group, but the board plans to for next year. If it comes down to the wire, Bacino said the agency could shift money around in this years budget to accommodate it. The only expenses he anticipates the council incurring would be travel reimbursement costs. Bacino announced at the GAC his interest in forming a group to help the board members better understand the impact of their regulations on credit unions. "I don't necessarily think a lot of the credit union movement sees this as an impediment," Bacino said. However, "Some groups have been complaining the [NCUA] board members sometimes don't think of the impact [of regulations] on the operational side." The council would be made up of 12 people, including one nominee per NCUA board member, one nominee from each NCUA region, and one nominee from CUNA, NAFCU, and NASCUS. Bacino is looking for a good mix of credit union representatives from all regions of the country, as well as all types and sizes of credit unions. He said that many credit union officials have indicated their interest in serving on the council to him. Representatives of the council would serve as volunteers and subjects discussed would be limited only to the discretion of the members on the panel. Bacino advocated that this system could provide the agency with a better understanding of how its regulations impact the credit unions and shorten the comment period necessary before issuing a final rule. Bacino added that he will be very specific in reminding everyone, particularly the council members, that their position is as an advisory council and nothing more. -scooke@cutimes.com