Questioning Cost of Small Credit Union Initiatives
In reading the February 2014 NCUA report it was interesting to note the Office of Small Credit Union Initiatives is hosting 15 workshops and CEO Boot Camp programs in 2014. The number of credit unions of less than $10 million in assets is reflected in chart at right.
I can't help but notice the trend does not look robust. The NCUA has several programs in place in addition to the OSCUI, including Community Development Revolving Fund, the Training Connection, the CU Connection, the Partnership Connection and the Resource Center.
Based on the slippery, sloppy, downward sloping trend line it appears to be picking up speed and gaining momentum.
Due to the results accomplished over the past 10 years has the NCUA considered an audit of these programs for their cost effectiveness? What is the ROI?
Has the NCUA considered sending some of their top-talent examiners to review these programs? Maybe the exam team can issue a jolly DOR or impose a LUA, while insisting they cut expenses in order to improve what is not working.
Should the NCUA consider increasing its expenses to fund these worthy programs in spite of an obvious record of failure? How much will the NCUA spend hosting the 15 workshops in 2014? How many of the few still-standing credit unions have attended these programs in the past?
Over 2,000 credit unions have faded into the sunset in the past 10 years. Has the NCUA bothered to interview the CEOs and directors as part of the exit interview to ascertain what is causing this epidemic of credit union failures? As a dues-paying, card-carrying member of the NCUA, I ask, how much are these initiatives costing the credit union community? Has the NCUA determined if this expense might just be a waste of time, effort, money and limited NCUA resources?
Based on the chart I can't see where the NCUA has received any lift from these initiatives. I do see where merging these credit unions into the billion-dollar credit unions have provided a lift. The NCUA should charge an acquisition fee to these billion-dollar credit unions as they continue to cannibalize the young. As the NCUA continues to deliver stacks of membership accounts and capital to these billion-dollar credit unions an acquisition fee is not unreasonable.
Stuart Perlitsh CEO
Glendale Area Schools Federal Credit Union