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

Speaking at CUNA's annual Marketing & Business DevelopmentConference here, Dollar said of major concern is field ofmembership and capital barriers, which continue to hinder charterworthiness.

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

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

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

As the ex-NCUA chairman, “I guess you could say it is a formerregulator's recognition that the regulatory environment can helpdrive or help thwart the conversion of credit unions to mutualsavings banks,” said Dollar. “Without good field of membershipdiversification choices, many credit unions will reach a point ofdiminishing returns in their member service,” he warned. That wouldbe the case, he continued, for example if a CU's sponsoring plantshuts down, military base closes or company merges. “Having theoption of a community charter, TIP charter or underserved areaexpansion is crucial for credit unions to find long-term viabilityin their charter,” he said. –[email protected]