NCUA Could Face Mass Supervisor Exodus in Next Few Years; Agency in Line with White House

NASHVILLE, Tenn.-Even though NCUA Chairman Dennis Dollar’s term has already officially expired, he is still working for the future of the agency. In an address to supervisory and management officials at the agency’s bi-annual (odd years) supervisory conference recently, he called “for a new generation of NCUA leadership.” Over the next four years, according to Dollar, one in three supervisory officials will become eligible to retire. He added that this means NCUA must work to “both demonstrate and develop our next generation of NCUA leaders to be positive thinkers with the right regulatory and supervisory philosophy.” He emphasized that efforts need to be made to continue effective safety and soundness regulation, as well as greater efficiencies within the agency. NCUA Vice Chair JoAnn Johnson also addressed the conference and emphasized efficiency, particularly in communications. “Good communication is central to the success of the agency. Also, clear and timely communication with credit unions will greatly help us achieve our goals,” she said. Additionally, she stressed that the agency will continue to seek opportunities using technology to enhance communication with credit unions. Dollar continued, “With your help we have brought NCUA a long way to become a much more respected and effective agency among credit unions, other financial regulatory agencies and on Capitol Hill, but we cannot rest on those laurels. I truly hope that one of my legacies as chairman is an agency which is forward looking with agency leaders in place, and in waiting, who will carry that vision forward.” He said that opportunities for those interested in leadership positions at NCUA are “virtually unlimited.” “Management development is one of the lifelines of an effective organization,” Dollar said. “NCUA needs to keep its management and executive development programs as a vital part of its strategic plans for the future.” In addition, agency supervisors should continue to play up the importance of member business lending to those credit unions that are prepared, Johnson said. “I am convinced that by becoming a financial partner for their members who are entrepreneurs, credit unions can play a significant role in helping create jobs and spur economic growth in America today,” she said. NCUA Board Member Deborah Matz, also a strong supporter of credit union member business lending, cautioned conference attendees that examiners should not assume that the NCUA Board’s “enthusiasm for flexibility” is a green light to run amuck. Examiners still need to “exercise diligence and be rigorous” in examinations and not fear saying `no’ to a credit union or being critical of them with regard to business lending. The same applies for the field of membership rule changes, Matz said. NCUA in Lockstep with White House During remarks at the conference, Dollar also noted that NCUA has achieved six of the top priorities President George W. Bush set out in his Management Agenda early in his administration. The priorities include strategic management of human capital, competitive sourcing, improved financial performance, expanded electronic government, budget and performance integration, and faith-based and community initiatives. “The NCUA has a board and management team that is totally committed to ensuring that the resources entrusted to us are well managed and wisely used,” Dollar said. “Every employee and supervisor has greatly contributed to the agency in achieving these goals set forth by both the President and the NCUA Board. Since the first priority of the President’s management reform initiative is to make government more citizen-centered, I am pleased by the progress we have made to ensure that NCUA is a more open and responsive agency to its stakeholders – America’s credit unions and their over 83 million members.” In 2001, Dollar initiated the Accountability in Management group to pursue the president’s efficiency goals. Since that time, according to the chairman, NCUA has successfully created flexible, competitive, and performance- and locality-based pay structure; generated savings by contracting out work where appropriate; streamlined management and organizational structure and reduced staff, as well as reducing the regional offices from six to five; expanded e-government efforts; and placed a special emphasis on faith-based credit unions under the administration’s push for faith-based and community initiatives. -