The National Federation of Community Development Credit Unions will press a meatier agenda on the parts of community development and small credit unions at a Nov. 12 meeting with senior NCUA staff and board members.
"We share the anger of the rest of the credit union movement about the corporate stabilization package and similar issues," explained National Federation CEO Clifford Rosenthal discussing the meeting. "But we also have a broader agenda as well that relates to CDCUs and other smaller credit unions," he said.
Some of the issues on the table for the meeting include things like a "policy and practice gap" that, the Federation argues, exists when agency board members make assertions about agency policy toward small credit unions but then agency staff and examiners do not model the new policies. The National Federation also wants to discuss reforming secondary capital standards for CDCUs and easing the rule that limits their non-member deposits for capital purposes to no more than the greater of 20% of assets or $1.5 million.
The National Federation is also strongly urging the agency to allow money from its community development revolving loan fund to be used as part of low income credit union's long-term capital.
"NCUA has over $16 million in the revolving loan fund that could play a crucial role in helping smaller and low income credit unions," Rosenthal said. "It is absolutely crucial that the agency use all of its financial, human, and regulatory, resources to help small credit unions survive through these circumstances," he said.
