ALEXANDRIA, Va. — For purposes of whether to grant a community charter, a well defined local community would have to have 2.5 million or fewer people and have a core area containing 50% of the jobs and 33% of the population, under proposed rules unveiled by the NCUA at today's meeting.
Those criteria would indicate to the agency that individuals in those communities have "sufficient interaction and/or common interests."
Once approved, the NCUA would regularly check to be sure the credit union is following through with its marketing plan to serve the area.
Recommended For You
The proposed rules also define a rural district as a contiguous area in which more than 50% of the population lives in areas defined by the U.S. Census Bureau as rural and the area's population doesn't exceed 100,000 people.
The agency is proposing the rules change, for which there is a 60-day comment period, to make the chartering process more objective and less time consuming.
NCUA Chief Financial Officer Mary Ann Woodson told the board that as a result of the sluggish economy, 5.63% of all insured shares are in credit unions with CAMEL 4 or 5 ratings and there are 328 credit unions with such ratings.
By contrast, at the end of November 2008 there were 257 credit unions with those ratings.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
