SAN DIEGO – NCUA Vice Chairman Rodney Hood commended corporates during his recent remarks at WesCorp's Annual Meeting and Future Forum and announced that he planned to call a summit at year-end on risk-mitigation tools for credit unions.

The vice chairman told attendees that he planned to call a summit of natural person credit unions and corporates to discuss the most current and sophisticated tools for mitigating balance sheet risks for credit unions of all sizes and explore alternative investment opportunities. "We must renew our focus on sustaining all of these not-for-profit financial cooperatives in the credit union system, while facilitating opportunities to mitigate risks and strategic partnerships for the continued growth and expansion of all financial cooperatives," he said.

Hood added that a risk-based capital structure could play a significant role in this goal. "I believe risk-based capital is the right approach at the right time for America's credit unions," he said. "I want to see a risk-based capital structure implemented for both natural person and corporate credit unions. However, it's clear to me that if NCUA is a proponent of risk-based capital, then we should be able to take the lead in the area which the agency has the statutory authority, and that is creating a risk-based capital structure of corporate credit unions. The ability to create such a system lies with the NCUA Board. I believe the positive track record of a risk-based system for corporates will aid potential legislative review for natural person credit unions."