Balanced Approach Key Says Hyland During Remarks at NAFCU Congressional Caucus
Alexandria, VA, September 18, 2006 – National Credit Union Administration (NCUA) Board Member Gigi Hyland spoke today before over 400 participants at NAFCU’s Congressional Caucus in Washington D.C.
“NCUA’s primary function is safety and soundness. We do our job as regulator and insurer best by ensuring the long-term success of credit unions,” stated Board Member Hyland. “This requires a balanced approach using sound risk management practices, not an ultra-conservative or no-risk tolerance one. It also means preserving and enhancing the value of the federal credit union charter.”
In her remarks, Hyland briefed caucus attendees on three key areas of focus for NCUA in the coming months:
- Data Collection Pilot - Board Member Hyland noted that all the data was collected by the August 31, 2006 deadline and the task before the agency now is to place the data into the appropriate framework and context in order to be responsive to the inquiries from the House Ways and Means Committee and the Government Accountability Office.(GAO) “While we will provide the GAO with the raw data the agency collected, such data will be accompanied by a full analysis and report that effectively responds to the questions asked of the agency and reflects the ways credit unions are reaching out to all of their members,” stated Board Member Hyland.
- Field of Membership - “Field of membership issues will continue to be at the forefront for the credit union system," said Board Member Hyland. “It’s a bit ironic that the agency is being asked to statistically verify credit unions’ outreach to all segments of their membership, especially people of modest means, yet the primary tool to do such outreach – adding an underserved area to a field of membership – is not available to all federally chartered credit unions. How can credit unions be expected to reach out to serve the underserved when the law prevents them from having access to the underserved?” Board Member Hyland also challenged credit unions to look within their existing field of membership to discover opportunities to provide more services which will meet the unique needs of groups within their membership, and stressed the importance of vision to a credit union’s success. “It is the size of a credit union’s vision, not assets, that will determine its future,” stated Board Member Hyland.
- Data Security - Board Member Hyland stated that data security, identity theft, and credit card fraud will also be ongoing issues. “Credit unions need to assure that they work with their data processing vendors to incorporate robust protection mechanisms in order to protect members’ identities and personal financial data,” said Board Member Hyland.
The National Credit Union Administration is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of over 85 million account holders in all federal credit unions and the majority of state-chartered credit union
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