North Carolina League Looks Askance at Joint Agency
North Carolina's Democratic governor, Beverly Perdue, unveiled a broad downsize of state agencies but the North Carolina Credit Union League is telling its members it disfavors any notion of combining bank and CU regulation.
In an e-mail bulletin, the league said existing CU supervision through a separate Credit Union Division has worked well over the years in protecting the public, adding that joining the CU and banking divisions for the sake of economies is unworkable.
In yesterday's announcement , Gov. Perdue said she is looking at consolidating 14 high-level departments and functions into eight, also urging a hiring freeze on all non-critical state jobs.
She said a list of 150 boards and commissions will be submitted in February to the General Assembly for review for a possible scaleback.
"Governor Perdue's initial proposal maintains the Credit Union Division as an independent regulator for state chartered credit unions and does not consolidate the Division with the Office of the Commissioner of Banks," the league noted, adding though that the trade group "will continue to be engaged in conversations with both the legislative and executive branches about the consolidation and elimination of various agencies and commissions.
The CU Division, which regulates 52 CUs and was established in 1915, "has operated exclusively from fees paid by state chartered credit unions and consolidation with the Office of the Commissioner of Banks would result in no cost savings for the state," the league said.
Lauren Whaley, the league's director of legislative/regulatory affairs, said state chartered CUs "are thriving under their current regulator who has fostered progressive partnerships." She added, "We are concerned that the orientation of a combined regulatory agency would erode the individuality of credit unions as member-focused institutions." The league maintains, she said, that "state-wide consolidation efforts should exclude the Credit Union Division."