Regulators in Louisiana are about ready to conduct a more formal, second survey of financial conditions impacting credit unions as a result of the BP oil spill, the state's top examiner, Sidney Seymour, said Thursday.
"So far the biggest concern we've been hearing is the domino effect from the moratorium [on off shore oil drilling]," said Seymour in detailing the watch-and-wait stance of the Louisiana Office of Financial Institutions in measuring the fallout on both banks and CUs.
An initial survey of banks taken just after the April 20 Deepwater Horizon explosion was preliminary in nature, said Seymour, adding "we really didn't check in great detail on the credit union side but now we are looking at doing a full survey."
The Louisiana examiner head said he was in touch Wednesday with NCUA's regional office in Austin, Tex. as well as the Louisiana Credit Union League about the need and immediacy of starting a thorough study of conditions. Of the state's 200 CUs, 45 are state-chartered.
As occurred during the aftermath of hurricanes Katrina, Rita and others and now with the BP spill, the agency joined with NCUA and the banking agencies in urging the regulated institutions to provide prudent financial assistance to customers and members impacted by the catastrophe, he said.
On Wednesday, NCUA joined with the Federal Reserve, FDIC, and the Comptroller of the Currency in a statement stressing that financial institutions "are encouraged to work with their customers and consider measures to assist creditworthy borrowers affected by the Gulf oil spill. Such measures can help customers recover financially and be better positioned to honor their obligations."
