Fears Aside, Boards Ease Into NCUA’s Literacy Rules
When the NCUA announced financial literacy requirements for board members more than a year ago, the mandate sparked a lot of anxiety prompting credit unions to seek out help and understanding of the new rules.
“There was a lot of fear,” said Tracy Conner, vice president of member relations at the Credit Union Association of New York. “Exactly how was NCUA going to test their knowledge? Of course, we tried to get some of those answers from NCUA, and there really weren’t very firm parameters around this.”
Meanwhile, Conner sees it as a positive move that the NCUA wants to confirm board members have certain basic financial knowledge. The critical task is developing the right type of education and determining whether a board member has reached a specific level of achievement, training leaders have said. At this point, the NCUA has left a lot of options open.
That can be a good thing, Conner said. No two board members are alike, and she applauds the fact the NCUA expects directors to receive ongoing education and continue to learn about the financial mechanics of the credit union. Still, more guidance is needed.