I'm proud to be a part of TNConnect Credit Union. Established in 1924, when a group of postal employees chartered the Knoxville Post Office Credit Union, we are now the oldest existing credit union in Tennessee.

TNConnect offers a full range of financial products: savings and loans, checking and credit cards. We are committed to serving our membership as a trusted, safe and sound financial partner.

But I worry about our ability to fulfill that vision in the face of ever increasing regulatory burden. I am not alone in that concern.

As a state-chartered credit union active, and serving in the NASCUS advisory leadership, I am accustomed to talking with regulators. I understand that both state and federal regulators have an essential role to perform within the credit union system. To be completely clear, I support my state regulator, welcome diligent supervision and examination, and believe in the regulatory framework underpinning our movement. Yet, too often, our concerns regarding regulatory burden are dismissed by some as a desire to avoid all regulation.

Regulatory burden is real and is slowly crushing the credit union movement. Particularly for those of us who are moderately sized, the cost and complexity of regulation are driving an ever increasing redirection of resources, both human and financial, away from daily service to our members to backroom compliance. I know my own state regulator understands this, and has stated his commitment to the vision that his responsibility is to ensure a competitive and viable regulatory framework that provides an opportunity to succeed. I commend this approach. I urge all regulators to embrace that vision.

To ease regulatory burden in a meaningful way, the NCUA and all regulators should perform a meaningful cost-benefit analysis of outstanding regulations and modify or eliminate those that prove unnecessary or unduly burdensome. Regulators should ask, “How are these making credit unions safer? Is there a better way to achieve what these rules are trying to do?”

Regulators should ask themselves whether the regulation is going to be effective in the real world in which credit unions operate. Regulators must also appreciate that asset-based regulations cast a far broader shadow than the technical threshold.

As a $48 million asset credit union, TNConnect must manage to all of the NCUA's rules applicable to credit unions $50 million and above for obvious reasons. In Tennessee, we have the option to compensate our directors. At TNConnect, we have chosen to continue to operate within the tradition upon which we were founded with dedicated volunteers. As I look at over the regulatory framework, I see ever increasing requirements for the board and wonder how much longer we can expect volunteers to keep pace with these regulations.

This year, the NCUA has a real opportunity to make strides toward a system of smart, streamlined regulation. In addition to the annual review of one-third of the NCUA's regulations, the agency is voluntarily participating in the Economic Growth and Regulatory Paperwork Reduction Act review, which is designed to eliminate unnecessary legislative and regulatory requirements of federal financial regulators.

While I congratulate the NCUA on its participation in these exercises, I challenge the agency to set a new standard for success. I hope the NCUA will tackle projects that save precious time and resources, making a real difference to credit unions of all sizes, like reorganizing its regulations to incorporate all of its share insurance rules applicable to state credit unions in one place. I understand there are considerable hurdles to achieving this type of substantive reform, but as the pace of federal regulation continues to accelerate, it is more important than ever to try, and to try now. Thoughtful regulatory reform will mean that more of the money we spend can be used to help our members or build capital.

Linda Childs is president/CEO of TNConnect Credit Union in Knoxville, Tenn., and chair-elect of the NASCUS Advisory Council. She can be reached at 865-246-6602 or [email protected].