Saying that there is "considerable confusion and frustration" about the NCUA's process for finding merger partners, NAFCU President/CEO Fred Becker today urged the agency to review the assisted merger process and encourage credit unions able to merge with another credit unions to notify the agency.
"NAFCU believes that standardized agency merger procedures and timelines will create a transparent process that will benefit all participants. NAFCU obviously understands that the agency needs flexibility in the current economic environment," Becker wrote Matz on Friday. "However, one consequence of the lack of standardized agency procedures is that many credit unions are being left out of fair and equitable consideration. Further, we believe standardized merger procedures would provide more competition thus adding further protection to the National Credit Union Share Insurance Fund."
Becker urged the agency to formalize standardized merger procedures that includes suggested timelines that prospective merger partners can follow if they want to assist an ailing credit union. These should be included in a proposed rule, which would then be open to public comment.
He also said his association is urging its members to contact their regional director of the NCUA to let them know if they are available as a merger partner with a troubled credit union.
