A lack of meaningful mergers and acquisitions in the credit union sector could have serious consequences, experts say.
The forces that would drive credit union consolidation are often thwarted by self-preservation.
Credit unions and regulators should revisit the realities and focus of IRR modeling, and the resulting balance sheet strategies.
Comparing estimates on the cost of the risk-based capital rule is like comparing apples to eggplants.
Credit unions say NCUA examiners are pressuring them to keep long-term fixed assets below 35% of total assets, sacrificing income.
Pressured by NCUA examiners and concerned about interest rate risk, credit unions shed mortgages and other fixed rate assets, giving up income.
Differences between the NCUA's risk-based proposal and Basel III requirements will make credit unions less competitive and less able to accumulate capital.
As federal tax reform lingers on Capitol Hill, Credit Union Times asked industry experts how the elimination of the credit union tax exemption could impact balance sheets.
Eliminating exemption would change playing field, increasing bottom line and management burden, execs argue.
According to the credit union industry's two major trade associations, the NCUA's proposed stress test rule is unnecessary because the four largest credit unions in the nation already conduct their own tests.