VANCOUVER, Wash. — Small credit unions need a break from the heavy regulatory burden and the time may be ripe for "reg-lite" policies, Linda Jekel, the chairman of the National Association of Credit Union Supervisors, told Washington State executives last week.
"I've heard about such policies at OTS and so I've been planning on talking to some of their staff on how it works," said Jekel, who also is Washington State Director of Credit Unions, making reference to counterparts at the Office of Thrift Supervisors. She said she expects to contact OTS in the next 30 to 60 days.
Jekel made her comments in connection with a statewide "forum tour" on top industry issues put together by her office and the Washington Credit Union League, which opened here Feb. 5.
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The Washington regulator said one of the leading complaints raised by CU executives at the session here was on the mounting and costly federal and state regulations borne by very small CUs that are ill-equipped to handle compliance.
"We do understand their concerns which is why we want to look into 'reg lite,'" said Jekel, who was joined in the session here by Larry Torres, associate Region V director based out of Tempe, Ariz. and John Annaloro, president/CEO of the Washington League.
Jekel said the executives complained that small CUs "need help and lack information to comply" and so "reg lite is an intriguing idea."
In addition to that topic, Jekel said she and Torres also discussed capital ratios, competition and the prospect of an earnings slowdown in 2007 stressing the need to stick to budgeting procedures.
Also discussed was a new state push for CUs to offer payday lending products and the concern that it be done prudently while protecting CUs and consumers.
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