NCUA Chairman Rodney Hood recently spoke at the National Association of State Credit Union Supervisors’ State System Summit in San Francisco. Notably, Hood said he believed his agency and state regulators are working well together to modernize the dual chartering and supervision system and reducing regulatory burdens for credit unions.
“The system of regulation and supervision where federal and state authorities work cooperatively, always with the common goal of a safe, sounder, more efficient and innovative credit union industry, has clearly demonstrated its merits,” Hood said in his remarks. “Essential to making that system work is a solid relationship between NCUA and state regulators, based on mutual respect.”
Hood and NASCUS Chairman John Kolhoff also signed a Document of Cooperation pledging continued coordination between state and federal regulators within the credit union dual chartering system. The document explains the general principles for ensuring credit unions’ safety and soundness, enhancing supervision, and fostering “an environment of innovation, prosperity, and success.” The new document is a significant update to the agreement signed by the agency and NASCUS in 2007.
Hood also reported the NCUA-State Supervisor Working Group, which consists of NCUA senior staff and representatives from six state credit union regulators, will work on the following initiatives in three phases:
- Phase I, recently completed: developed a pilot program for a system of alternating examinations. Six states are now participating in that program.
- Phase II, now under way: identify improvements in coordination and cooperation between the NCUA and state regulators when conducting joint exams or supervision.
- Phase III: look for other potential benefits to credit unions from improved collaboration between state and federal regulators.
To learn more, visit NCUA’s website.