Regulatory roadblocks that keep small credit unions from forming a network with others while maintaining their identity must be removed, NCUA Vice Chairman Rick Metsger said Monday.

Speaking during the second day of the NCUA Governmental Affairs Conference, Metsger said small credit unions that are having financial problems should have an alternative to a total merger during which they lose their identity.

He said he wants the NCUA to build on the Network Credit Union concept developed by the Filene Institute and others.

“I commit that I will work to remove roadblocks to credit unions who wish to come together under the umbrella of one stronger charter, but who continue to operate under their own identities in their communities, seamless to their members, but now with added resources and reduced compliance and regulatory burden at the local level,” Metsger said.

He said that last week, the NCUA’s general counsel said that key elements of the network concept are permitted under the Federal Credit Union Act. 

“Your cooperative structure can help smaller credit unions survive in an increasingly challenging economic climate,” he said, adding that the death of a small credit union does not have to have a pre-ordained conclusion.

Under the network concept, participating credit unions retain their own CEO and advisory boards of directors.

Metsger also said that during the coming year, the NCUA must adopt the final field of membership rule — but only after reviewing more than 11,000 letters it received commenting on the proposed rule.

“Despite what you hear from your competitors, Congress explicitly gave the NCUA Board broad authority to define what these terms mean,” he said.