Search
 

Small Credit Union Definition: Make Good Better

While agencies disagree on the definition of a small financial institution, the NCUA's former chairman says $250M is a reasonable number.

By Michael E. Fryzel | Updated on June 05, 2015
The NCUA Board has a unique opportunity to promulgate a regulation that will have a positive impact on small credit unions. At a future board meeting they will vote on changing the current definition of small entity credit unions from less than $50 million in assets to less than $100 million in assets. It is a good move but one that could be better.

The current definition of a small credit union was adopted by the board in 2013 and was the second time it has been changed since initially defined in 1987. The continued changes in the financial services industry and credit unions specifically dictate a more frequent review of the threshold and a more robust approach to setting a standard.

The Small Business Administration says that a business is small if its assets are under $550 million, whereas the CFPB uses the figure of $175 million or less to consider an entity as small. The differences in those numbers reflect quite a range and quite a disparity.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Why Your CU Needs a Chief Data Officer

Why Your CU Needs a Chief Data Officer

Henry C. Meier, Esq. |

There are too many data-related questions to answer and legal issues hanging around to not have a data chief at the helm.

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.