NAFCU giving corporates their due; new committee won't just be for show

WASHINGTON – NAFCU says corporate credit unions and corporate credit union issues have become too important to it as a trade association and to its members not to have a consistent voice on. The trade association announced earlier this year that it was streamlining its committee structure to better serve members. That included eliminating five standing committees; expanding other committees; among other changes. One of the new committees formed will be the Corporate Credit Union Committee, scheduled to officially be in place by this coming January. NAFCU itself also has seven corporate CU members, so this committee helps it be more responsive to them, said committee co-chair Brad Beal, president/CEO of Nevada Federal Credit Union. “We wanted to ensure their interests were represented. Secondly we recognize the importance of corporate credit unions to our natural person credit unions,” said Beal, who co-chairs the committee with Xerox FCU President/CEO Bill Cheney. Interestingly, NAFCU hasn’t always had this many corporate CU members. It has picked up many in just the last few years, such as Corporate One which has only been a member for a little over a year. NAFCU says this may be an indication that corporates are looking for better representation on Capitol Hill. Of course the Association for Corporate CUs has been active on that front. Cheney said this committee won’t just be for show. “It’s easy to have committees. It comes down to having the leadership who ensures we involve the corporates and we act on corporate issues,” said Cheney. He said though the committee officially starts next January, there has been a corporate ad hoc committee in place for over a year. “We’ve met in Washington with the people in NCUA who craft corporate regs. We’ve had several meetings already, so we’re going to be active,” said Cheney. Beal said the committee will also have the benefit of having NAFCU staffers on it that can do a lot of leg work, and it will invite all NAFCU corporate members to participate in the meetings. NAFCU’s Associate Director for Taxation and Accounting Bill Hall and NAFCU Senior Economist Jeff Taylor will be on the committee. Jim Mills, NAFCU Chairman and president/CEO of Three Rivers FCU, said he’s glad the board went ahead with the corporate committee because as a CEO he wants corporates to be as empowered as they can be to better serve credit unions. “I think from a CEO standpoint, the broader the corporate regulation is, the more things they can do and bring to the table for me. It prevents me from having to be out in the marketplace dealing with other companies,” said Mills. Mills said one natural area for corporates to get more involved is helping CUs serve businesses, which is already starting to play out. “During our Congressional Caucus some corporates are going to sit down with SBA and NAFCU staffers to discuss that,” he said. As for Part 704, Mills said NAFCU has so far been active in expressing to NCUA corporates’ need to have a more risk-based style of capital as well as a higher NEV. [email protected]