NASCUS Summit continues with mission critical sessions on regulatory capital, information technology and more

COEUR D’ALENE, ID (September 20, 2013) — At the NASCUS State System Summit on September 19 regulators, credit union system leaders and dual chartering supporters continued to engage in mission critical discussions on the challenges and opportunities facing the state credit union system.

Thursday’s sessions featured the Annual NASCUS Interagency Dialogue  – one of two annual sessions where state regulators and the NCUA Board, NCUA Regional Directors and federal examiners come together to collaborate and share information on critical supervisory issues facing credit unions. “This session highlights the critical partnership between states and the NCUA”, said NASCUS Chairman John Kolhoff, Director, Office of Credit Unions for the State of Michigan.

NASCUS Credit Union members joined NASCUS President Mary Martha Fortney for a dialogue about issues on the minds of state credit union executives and volunteers. Attendees were particularly concerned about Supplemental Capital and preserving state authority and protection of the state credit union charter.

The day closed with a session on “The Future of Regulatory Capital” featuring panelists Michael Scanlon, Partner at K&L Gates, and Steve Farrar, Loss/Risk Analyst at NCUA.

Noting that credit unions making consumer loans will be happy with the proposed risk based rule, Farrar speculated that the top risk weighted capital requirement would be comparable to the banks’ risk weighted requirement of 10.5%. Farrar also stated that while the exact publication date of the proposed rule was subject to the NCUA board, he anticipated timeframe in which a final rule would be published in 2014 with an ultimate effective date of 2016.

Farrar also discussed NCUA’s modeling of the agency’s risk weightings. He assured attendees that 90% of all credit unions were well capitalized under the risk based proposal, and most of those who were not were “right on the bubble.” NCUA will also provide an application on their website when the rule is proposed that will allow credit union to run their numbers to model their risk weighted requirement under the rule.

Today’s session will feature an update from NCUA Board Member Richard Metsger, a Director Compensation Dialogue, an Overview of Cybercrime Emerging Information Technology Trends Insights and Predictions for Financial Services for 2014. “This year’s State System Summit continues to be a dynamic forum for discussion with leaders, regulators and state credit unions,” said NASCUS President and CEO Mary Martha Fortney.

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