Fryzel Calls Credit Unions 'A Solution During Troubled Times,' Urges Unity and Focus
Alexandria, Va. February 24, 2009 – National Credit Union Administration Chairman Michael E. Fryzel today emphasized credit union’s relatively strong position, noting that credit unions are the best capitalized segment of the nation’s financial services industry, before an audience of over 3500 credit union leaders at the Credit Union National Association's Governmental Affairs Conference in Washington, D.C.
“In these troubled times, you are not the problem, you are the solution. Credit unions have never cost taxpayers a penny and Capitol Hill will be pleased to welcome you,” Chairman Fryzel said. “However, there is much work to be done because our cooperative system has experienced a shock that has damaged the nation’s entire financial network. Fortunately, our hands are not tied; we have strong capital position and the trust of the marketplace on which to build.”
 Fryzel, making his first appearance as NCUA Chairman before the CUNA Conference, stressed the credit union legacy of common purpose and cooperation, calling them "not just ideals, but useful tools to work through today’s downturn." He noted the credit union level of loan growth exceeded $37.4 billion in a difficult economy and announced that total credit union loans reached a record $566 million in 2008.
Addressing the current difficulty in the corporate credit union segment, Chairman Fryzel encouraged credit unions to work with NCUA to reach a "systemic solution. With credit union input, we can create a collaborative regulatory framework that will lead to a stronger system."
“Credit unions have always been good at accepting and driving change,” added Fryzel, and the credit union system and NCUA "should not lose this opportunity to set a course for credit unions in the 21st century. In the words of Lincoln, ‘The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise to the occasion. As our case is new, so we must think anew and act anew.’”
Chairman Fryzel’s speech is available online at http://www.ncua.gov/news/speeches/speeches_fryzel.html.
The National Credit Union Administration is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund (NCUSIF), insuring the savings of nearly 89 million members in all federal credit unions and the vast majority of state-chartered credit unions. NCUA is supported by credit unions, not federal tax dollars.
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