Does NCUA Disdain the Dual System?
The NCUA’s proposed rule that would allow it to declare state-chartered federally insured credit unions in “troubled condition” is the latest move by the federal regulator that has some state- chartered credit unions and their regulators crying foul.
The rule, introduced NCUA’s July 24 board meeting, would define a state-chartered federally insured natural person or corporate credit union as troubled if either the state or federal regulator assigns it a CAMEL or CRIS code of 4 or 5 in either the financial risk or risk management categories.
“This very much feels like a punitive action, like the NCUA is saying ‘we are making a statement here’,” Smith said.
Jack Braswell, CEO of the $240 million Members Credit Union in Winston-Salem, N.C. said the NCUA’s action make it seem like “they’re in the business of regulating our regulator.”