Federally insured, state-chartered credit unions have consistently reported higher rates of delinquencies and charge-offs on loan participations.
The NCUA pointed that out in December after releasing a proposal that would extend what it calls are protections on loan participations to all federally insured credit unions.
The distinction is notable given the recent takeover of the $318 million Telesis Community Credit Union, which experienced financial troubles based in large part to its business lending and loan participation activities.
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