NCUA Corporate Action Update
Recently the National Credit Union Administration (NCUA) approved a series of actions that, according to an agency press release, were “designed to enhance and support a corporate credit union system facing unprecedented strains on liquidity and capital due to extraordinary market disruptions and the current economic climate.” These actions include:
- Guarantee uninsured shares at all corporate credit unions through February 2009, and establish a voluntary guarantee program for uninsured shares of all corporate credit unions through December 31, 2010;
- Issue a $1 billion capital note to U.S. Central Corporate Federal Credit Union (U.S. Central);
- Issue an Advance Notice of Public Rulemaking (ANPR) on restructuring the corporate credit union system; and
- Declare a premium assessment to restore the National Credit Union Share Insurance Fund (NCUSIF) equity ratio to 1.30 percent, which will be collected in 2009.
Since that time a great deal of concern has been expressed by the credit union community about the proposed cost of these actions. The Credit Union National Association (CUNA), while recognizing the regulator’s need to act, has stated that that the NCUA has not adequately explored a complete range of choices available or ways the plan could be less of a cost burden to credit unions already coping with tough economic conditions. Those options include applying for TARP funds, utilizing the CLF and permitting credit unions to pay these assessments from reserves.
The Association is in constant communication with credit unions, CUNA and the NCUA in an effort to maintain the flow of communication and to seek the best possible outcome for credit unions.
Corporate Stabilization Webinar
Affiliated credit unions may register online for the 2:00 p.m. ET Wednesday, February 4, webinar that the Credit Union National Association (CUNA) President Dan Mica is hosting on the National Credit Union Administration “Corporate Stabilization Program.” This 90-minute event will feature CUNA and credit union experts on regulation, law, accounting and other areas. This webinar will also be archived for use by those who cannot make the February 4 date and time. Click here to register: NCUA’s Corporate Stabilization Program: Challenges & Questions (http://training.cuna.org/elearning/webinar/EW02409_fct.html)
Spring Conference set for April 3-5
Success Driven by Knowledge is the theme for your 2009 Spring Volunteer Development Conference. The Chatham Bars Inn in Chatham, MA will host the event from April 3 – 5.
The Association’s 2009 Spring Volunteer Development Conference will bring national and local experts to Chatham to address these challenges. From innovation to the economy, membership growth to lending, and much more, the conference will highlight the issues, discuss what is working, and give attendees the tools to prepare credit unions to successfully move ahead.
A distinguished array of speakers include: Dave Colby, the chief economist at CUNA Mutual Group; Bob Hoel, the Filene fellow in residence at the Filene Research Institute and professor emeritus of business at Colorado State University; and Brett Christensen, owner of CU Lending Advice, LLC.
Join us at the Chatham Bars Inn to listen to, discuss with, and question some of the best strategic minds from the credit union movement.
For more information about this program click here: 2009 Spring Volunteer Development Conference (https://www.signup4.net/Public/ap.aspx?EID=CUCE205E)
DeposZip gains momentum in shared branches
Use of DeposZip, a remote deposit capture (RDC) product, is increasing among credit unions and their members nationwide, according to Financial Services Centers Cooperative (FSCC) and Eastern Corporate Federal Credit Union (EasCorp). DeposZip allows members who have access to the Internet and a scanner to deposit checks from home at any time.
Digital Federal Credit Union (DCU), Marlborough, Mass., has signed up more than 16,000 RDC users since its implementation. Hanscom (Mass.) Federal Credit Union went live with DeposZip last year. "RDC levels the competitive playing field with other financial service providers who have a significant brick-and-mortar branch network," said Craig Roy, DCU senior vice president of support services. "We have put a deposit-taking option in each one of our members' homes."
Analysts predict that 30% to 50% of financial institutions will offer RDC capabilities to small-business consumers during the next four years, FSCC and EasCorp said.
DeposZip is available to all credit unions, including non-shared branching credit unions.
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