NCUA Chairman Debbie Matz said the NCUA is working topromote a more diverse workforce, and she encouraged credit unionsto ensure that their employees and volunteers reflect the groupsthey are chartered to serve.

The Dodd-Frank Act requires each financial services regulator toestablish an Office of Minority and Women Inclusion. Each OMWIdirector must develop standards that assess the diversity policiesand practices of the institutions it regulates per the law.

“Within NCUA, we're working to promote a more diverse workforceand to consider minority- and women-owned firms when we contractfor services,” Matz said.

The NCUA, Consumer Financial Protection Bureau, Federal Reserve,FDIC, Comptroller of the Currency and the Securities and ExchangeCommission all proposed similar diversity standards perDodd-Frank.

“In developing these standards, the Agencies took into accountindividual entities' circumstances (for example, asset size of theentity, number of employees, governance structure, income, numberof members and/or customers, contract volume, geographic location,and community characteristics),” said the Oct. 24 Board ActionMemorandum.

In Thursday's board meeting, Matz said the examination processwould not be used to assess diversity. Credit unions with at least100 employees are required to report diversity self-assessments,which the NCUA will use to prepare an annual report forCongress.

Approximately 600 federally insured credit unions have more than100 employees, the NCUA said.

“Expanding diversity is not only the right thing to do; it'sgood business,” Matz said. “We encourage credit unions to ensuretheir boards and staffs reflect their memberships.”

The standards include four categories: organizational commitmentto diversity and inclusion; workforce profile and employmentpractices; procurement and business practices—supplier diversity;and, practices to promote transparency of organizational diversityand inclusion.

Among the standards is a requirement for the entity to take“proactive steps to promote a diverse pool of candidates, includingwomen and minorities, in its hiring, recruiting, retention, andpromotion, as well as in its selection of board members, seniormanagement, and other senior leadership positions.”