ALEXANDRIA, Va. — In a Supervisory Letter earlier this year distributed to all examiners as well as federal credit unions, NCUA hoped to steer examiners away from the suggested 1% return on average assets to achieve a CAMEL 1 rating.

“NCUA appreciates the delicate balance credit unions must strive to achieve between the short-term and long-term needs of the credit union. In this regard, I encourage credit union officials to be committed to a sincere, conscientious, and well-planned strategy to safely balance the net worth and earnings needs of the credit union with strategies to achieve longer-term objectives,” NCUA Chairman JoAnn Johnson wrote in Letter to Federal Credit Unions 06-FCU-04. “I am confident that with an open dialogue examiners will be supportive of such endeavors.”

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