The regulatory responsibilities of the NCUA should be handled by a newly created division of the Treasury Department and there should be separate entities to administer the NCUSIF and the CLF.
Those are the key components of a reform agenda outlined by Callahan & Associates, the Washington-based credit union consulting firm.
Doing credit union regulation out of the Treasury Department will “address a fundamental flaw in the cooperative structure,’’ the report said.
Before the NCUA was established as an independent agency, its functions were carried out as part of the broader responsibilities of other departments. The industry pushed for an independent agency, arguing that it could better understand the unique qualities of credit unions.
And while some restructuring proposals called for the elimination of the NCUA as an independent agency, the financial overhaul bill passed by Congress last year made no changes to the agency’s authority.
The reform agenda is outlined in the April issue of the Callahan Report.
“America has never needed credit unions more. However, systemic reform is necessary to fulfill the mission set forth by Congress and to satisfy the growing needs of members,’’ the report said.
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