Recently, NCUA Chairman Debbie Matz announced an agency initiative to modernize its rules and regulations for federally insured credit unions. While this initiative has not yet fully materialized, any effort that will enhance the ability of credit unions to meet member's needs and be more competitive in a rapidly changing financial marketplace is welcomed news.

Admittedly, the NCUA's definition of "regulatory modernization" may not be exactly the same as that of the credit unions it regulates. However, I think we can all agree that a more modern approach to credit union regulation is clearly warranted. To that end, it is encouraging that the agency has indicated a willingness to examine ways to modernize some of its regulations in today's hyper-regulatory environment.

Regulatory balance and flexibility are absolutely essential in today's financial marketplace given the considerable amount of what many have characterized as overreaching regulations that have been implemented over the past several years as a result of the financial crisis.