WASHINGTON–Two members of the NCUA board touched on an issue of concern to many—what might happen to the credit union regulator and could it be swept under the FDIC.
The fear steams from the Trump administration’s efforts to reduce the size of the federal government, which has led to layoffs, closures of agencies such as the CFPB, and plenty of rumors, including over NCUA’s potential fate.
One executive order from the White House has already stated that NCUA is under its control.
This week, with credit unions in town for the GAC, board members Todd Harper and Tanya Otsuka addressed some of the talk during
‘Some Reconsiderations’
Harper told the DCUC’s Defense Matters meeting that the “NCUA board is going through some reconsiderations of how we are going to change the agency and what we are going to do. That’s what a new administration is and does. I’m confident we will get through this as a different NCUA but a strong NCUA.
Harper said the agency will remain focused on three things:
- Protecting consumers
- Protecting deposits
- Protecting taxpayers
Reason for Independence
Meanwhile, speaking before a general session at America’s Credit Unions GAC, Board Member Tonya Otsuka told the several-thousand people in attendance, “NCUA understands the unique characteristics of credit unions and their members. Our independence from politics and distinction from other financial regulators allows us to focus on what matters to the credit union system it also allows us to maintain long-term stability, identify risks quickly during a crisis, and prudently manage the share insurance fund.
“We must not lose sight of why these guardrails are in place. NCUA as we know it today is the product of one too many dark periods in our nation’s history.”
As Otsuka noted, NCUA was created by Congress in 1970 Congress established the NCAA as an independent agency to charter.
Need for ‘Independent Regulator’
“We need an independent regulator…NCUA is critical to protecting millions of members who rely on us to safeguard their hard-earned money by focusing on our mission,” Otsuka continued. “We can ensure credit unions are well-positioned for the future and able to meet their members’ financial needs in good times and bad. Ultimately, our society benefits from a healthy credit union system that provides access to affordable financial services to those of modest means. Protecting that system is central to why we are all here today; let’s not forget that.”
Support for Small CUs
Otsuka said the agency is also looking to how it might support smaller credit unions, saying among other things she is considering proposing a new rule that would allow a credit union to reimburse board members for childcare and dependent care for credit union-related meetings.