HENDERSON, Nev. — Taking note of recent developments on conversions, former NCUA Chairman Dennis Dollar last week called on state and federal regulators and the industry leadership to work much harder at enhancing the value of the credit union charter.

Speaking at CUNA's annual Marketing & Business Development Conference here, Dollar said of major concern is field of membership and capital barriers, which continue to hinder charter worthiness.

The fact is, he told marketers, there are marketplace forces that are trying to get CUs to convert to mutual savings banks. He later identified one of those forces as consultants advising CUs, but the Birmingham, Ala. firm he heads is by no means one of them.

On the contrary, Dollar Associates, LLC is a firm that stands as a “true believer and a supporter of the credit union charter.”

However, he told the CUNA audience, “I think it is crucial that credit union leaders choose to stay with the credit union charter and work with legislators and regulators to make it more viable for long-term financial viability, member service growth and diversification.”

As the ex-NCUA chairman, “I guess you could say it is a former regulator's recognition that the regulatory environment can help drive or help thwart the conversion of credit unions to mutual savings banks,” said Dollar. “Without good field of membership diversification choices, many credit unions will reach a point of diminishing returns in their member service,” he warned. That would be the case, he continued, for example if a CU's sponsoring plant shuts down, military base closes or company merges. “Having the option of a community charter, TIP charter or underserved area expansion is crucial for credit unions to find long-term viability in their charter,” he said. –[email protected]