The financial malaise hitting Nevada credit unions and banks "is by no means over" and it is a good thing the state recognized regulatory needs early on, the state's top supervisor, George Burns, said Thursday.
"We've managed to keep things under control for the time being and I'm happy to say our five bank failures are still behind Georgia's," said Burns in commenting on what he said are deteriorating conditions in the consumer sector impacting lending portfolios of both CUs and banks.
These are "challenging times" for CUs in his state, which he said remains "ground zero" in the nation's economic crisis.
Burns, who is commissioner of the Financial Institutions Division, told Credit Union Times he is particularly gratified that the state legislature last fall "recognized we were facing big problems" and granted his request to increase the examiner staff by 10 to 40. That hiring increase was accomplished within the last two months, he said.
Meanwhile, those examiners, he said, have had to step up their frequency of on-site visits from an 18-24 month cycle to 12 months "and for the very troubled credit unions or banks to six months."