Fryzel Emphasizes Safety and Soundness, Member Protection to California/Nevada Leagues
November 17, 2008 Alexandria, Va. -- National Credit Union Administration Chairman Michael E. Fryzel last Thursday sounded a strong call to for regulatory proactivity and focus on credit union members during remarks to the California/Nevada Credit Union League’s Annual Meeting and Convention in San Francisco, CA.
"Safety and soundness must be the central focus of any financial institution regulator. Since assuming the Chair at NCUA, I have repeatedly stated that my commitment is to be extremely vigilant in the examination and regulation of credit unions," noted Chairman Fryzel. "Federally insured credit unions have never cost the U.S. taxpayers a penny, and I intend to see the high bar that has been set will remain intact throughout my tenure.”
Fryzel also outlined NCUA’s ongoing initiatives to protect consumers, including:
- Initiation of a multi-faceted media campaign to communicate the facts about the National Credit Union Share Insurance Fund to credit union members and the general public;
- Enhancement of NCUA’S Consumer Assistance Hotline, including expanded hours and number of available lines;
- Continued close supervision of credit unions, particularly those dealing with exposure to a declining housing market and simultaneous credit crunch. Additional attention will be paid to credit card and home equity delinquencies;
- Performance of a comprehensive "stress test" to gauge the ability of the National Credit Union Share Insurance Fund to withstand potential losses during market dislocations. While NCUA has conducted such assessments of the Fund in the past, this new test will more accurately measure the Fund’s capacity to withstand the stresses that could develop during the current volatility;
- Daily monitoring of the liquidity position of corporate credit unions and establishment of a team of capital markets specialists to aid the corporate credit union network;
- Proposal of a return to the 12 month supervisory contact/examination schedule for all federally insured credit unions.
Noting the consumer-centered nature of credit unions, Chairman Fryzel challenged the attendees to “reassess what they do just as NCUA is doing. Step back and take a new look at your members; develop fresh ideas to what you can do to better and to reconnect to the philosophy of people helping people,” Fryzel said.
Chairman Fryzel’s speech
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, insuring the deposits of nearly 89 million account holders in all federal credit unions and the majority of state-chartered credit unions.
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