SEATTLE — NCUA Chairman JoAnn Johnson told attendees at this year's African-American Credit Union Coalition conference that their voices must be heard when it comes to having the ability to serve those of modest means.
Johnson provided a legislative update on industry issues including data collection to prove that credit unions are serving those of modest means, a Congressional request that was not unreasonable to ask for, she said. NCUA is on schedule to have those collection efforts completed by the end of the month.
"Some members of Congress think when a member reaches a certain income, they should not belong to a credit union," Johnson said. "As a regulator, I think this is wrong. All consumers should be able to move up from that low rung on the ladder. Credit unions are legally empowered to reach out."
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Johnson called on attendees to go home and contact their Congressional delegates to make their voices heard on allowing all credit unions to adopt underserved groups. She also said NCUA is very optimistic about its risk-based capital proposal, which aims to help identify risk better. A round of applause filled the room when Johnson responded to a question about balancing risk with being able to serve the underserved.
"Part of the mindset has been is if your ROA is reduced, 'ooooooo,'" Johnson said. "Risk is acceptable. At the same time, you need to tell us what you are doing to accommodate that risk."
Johnson also spoke on NCUA's role with CUs wanting to convert and mentioned the regulator has not received many comment letters on its proposal.
"Consumer protection is at the crux of the whole issue," Johnson said. "We as a regulator have the right to ensure that they have access to adequate information to ensure that they are not rushed to make a vote."
Meanwhile, stagnant membership growth at credit unions continues to be a pressing issue, Johnson lamented.
"Membership growth has been sluggish, at best," Johnson told attendees.
Johnson, who has been a member of Farmers Bureau Credit Union for 30 years, shared her experience of attending dinners for Congressional delegates sponsored by the CU. As the years went on, she noticed that CU senior staff and board directors were getting "older, [hair was getting] grayer and thinner."
"There's an advantage to having younger blood," Johnson said. "Your board needs to reflect your membership. Concentrate on how you can move your membership forward."
One way to do this is through financial literacy, Johnson suggested. She applauded attendees for their current programs in this area.
"One of the areas I think you go above and beyond is financial education," she said. "The bottom line is when it comes down to [offering help] one on one, I applaud you for what you're doing."
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