Search
 

Many Put Industry on Path to Mediocrity: Opinion

All of us in the credit union industryregulators, credit union professionals and directorshave a role to play. Our actions have consequences both short term and long term. I fear that the actions of some of us are leading credit unions on a path to mediocrity.

By Guy A. Messick | Updated on April 17, 2013

All of us in the credit union industry–regulators, credit union professionals and directors–have a role to play. Our actions have consequences both short term and long term. I fear that the actions of some of us are leading credit unions on a path to mediocrity. 

Let’s start with the NCUA. Ask the NCUA, and they will tell you that its principal function is to protect the share insurance fund. There are two ways of protecting the fund, by surgically cutting out the risks or by full scale amputation of any risk. The NCUA has chosen the latter approach. The strategy is to identify the weakest links to the system (credit unions that have caused losses), determine the cause and implement rules to prevent that cause from occurring in all other credit unions. The strategy serves the purpose of protecting the share insurance fund in the short term but, I would argue, puts the fund and the industry at much greater risk in the long term. 

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.