Newsroom
NAFCU Board, NCUA's Hood discuss key CU concerns
Members of the NAFCU Board of Directors yesterday met with NCUA Board Chairman Rodney Hood to discuss issues affecting credit unions, including cybersecurity, capital reform, and exam modernization. NAFCU President and CEO Dan Berger and senior members of NAFCU's staff accompanied the group.
The NAFCU Board of Directors consists of credit union volunteers and management from across the country who are dedicated to maintaining an association that is in touch with and responsive to the needs of the membership.
During the meeting, the group also discussed NAFCU's Fintech whitepaper, designed to chart a path towards regulatory coordination between traditional financial institutions and fintech companies.
Cybersecurity
Chairman Hood expanded on his priorities relating to cybersecurity and some of the agencies current initiatives during the meeting. In recognition of National Cybersecurity Awareness Month last month, the NCUA reminded credit union stakeholders to remain vigilant as financial losses due to cybercrime reached $2.7 billion in 2018.
NAFCU consistently works with stakeholders to advocate for national data and cybersecurity standards, which the association believes should hold retailers the same level of protections for consumer data as financial institutions. The association has also flagged the increase in credit unions' costs as they implement efforts to bolster cybersecurity at their institutions.
As a leader in calling for such standards, NAFCU has numerous resources available to ensure credit unions can effectively identify and address cybersecurity concerns, including online compliance resources and an on-demand webinar.
Capital reform
Earlier this year, the NCUA Board moved forward with a proposed rule to further delay the implementation date of its risk-based capital (RBC) rule to provide credit unions with more time to prepare for implementation and to evaluate other potential changes and capital-related initiatives. NAFCU has previously urged the NCUA to consider the strength of credit unions within the framework and has shared several recommendations for the board to consider.
The association has led efforts to ensure credit unions and their members benefit from a modern capital regime, working closely with policymakers on Capitol Hill and at the NCUA. Following the enactment of S. 2155, which made changes to bank capital, Berger encouraged the NCUA to "consider its entire rulemaking anew." Furthermore, a NAFCU-backed provision to delay the rule by two years from its original implementation date passed the House three times in 2018.
NAFCU will continue to encourage the agency to design a true RBC system for credit unions and push for a longer delay of the NCUA's current rule.
The group also discussed the Financial Accounting Standards Board's (FASB) current expected credit loss (CECL) standard, which has been delayed by an additional year for not-for-profits, including credit unions. NAFCU has previously asked for resources on CECL from FASB and the NCUA to help credit unions implement the new standard.
Exam modernization
NAFCU continues to meet with the NCUA to discuss efforts to modernize and improve the agency's examinations, including its Modern Examination and Risk Identification Tool, as well as other exam-related issues and has recommended that the NCUA expand eligibility for an extended 18-month exam cycle for all well-run, low-risk credit unions. The association has also asked for an update on the agency's exam modernization efforts.
Additionally, the newest edition of The NAFCU Journal features an article on the exam process with insights from representatives at credit unions and the NCUA.
Share This
Related Resources
Add to Calendar 2024-04-24 14:00:00 2024-04-24 14:00:00 Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage About The Webinar Join us to learn more about network lending, a cooperative model allowing credit unions to optimize liquidity and achieve loan growth. Discover how credit unions can participate in loan pools with other institutions, allowing them to diversify portfolios, access loans with potentially lower risk and higher yields, and expand lending capacity without necessarily needing a surge in deposits. Delve into how credit unions can pool their resources, set common underwriting and pricing standards, and collectively originate, buy, and sell loans to optimize liquidity management. Hear from your peers about best practices, case studies, and practical strategies to harness the full potential of network lending and how it's helped their credit unions. Don't miss this valuable opportunity to learn how to strengthen your credit union's position in today’s competitive environment. Key Takeaways: How network lending differs from traditional lending The benefits of participating in loan pools with other credit unions How credit unions can set common underwriting and pricing standards and collectively originate, buy and sell loans to optimize liquidity management Why network lending is critical to loan growth Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage
preferred partner
LendKey
Webinar
Add to Calendar 2024-04-23 14:00:00 2024-04-23 14:00:00 Monitoring the Latest Litigation Risks Credit unions’ operations pose litigation risks, with more of these cases being filed as class action lawsuits. In this Monitoring the Latest Litigation Risks for Credit Unions webinar, you’ll review some of the specific kinds of lawsuits impacting credit unions and what potential claims could be on the horizon. You’ll also examine some options for mitigating risks. Key Takeaways Review the current lawsuit trends. Understand the potential claims risks Explore options for mitigating risks. Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 23, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Monitoring the Latest Litigation Risks
Credits: NCCO, NCRM
Webinar
Add to Calendar 2024-04-23 09:00:00 2024-04-23 09:00:00 Operational Agility: Key Factors for Success in 2024 and Beyond Listen On: Key Takeaways: [02:34] A lot of people think of fraud losses and they are very mindful of what that means for their organization and their bottom line but we are thinking about it from a cost perspective beyond that. [06:38] When you should engage has a lot to do with how long it would take to potentially replace your current service provider. [10:45] Sidecar is not your primary core solution but it is something that allows you to go to market maybe under a different brand or different set of technology. [15:21] Focus on the tech stack maybe a little bit more than you used to. Enable that tech stack to allow you to be agile going forward and you will be able to focus a lot more on the member than running an IT shop Download SRM's Focus on Operational Agility to Achieve Success in 2024 Report Web NAFCU digital@nafcu.org America/New_York public
Operational Agility: Key Factors for Success in 2024 and Beyond
preferred partner
Strategic Resource Management
Podcast
The Bottom Line on Insurance Tracking and Collateral Protection
Strategy
preferred partner
Allied Solutions
Blog Post
Get daily updates.
Subscribe to NAFCU today.