WASHINGTON - NCUA Board Member J. Mark McWatters called on the agency to provide regulatory relief to the industry it regulates during the annual CUNA Governmental Affairs Conference Feb. 22.
McWatters outlined 21 points that he would like to see the agency provide in the way of regulatory relief to credit unions, often receiving generous applause from attendees.
"Regrettably, the day-to-day regulatory burdens of the credit union system appear unprecedented and steadily growing," McWatters said. "The irony of this statement is not lost on a community that was neither a perpetrator nor an aider and abettor of the recent financial crisis."
He said the community should "engage in forward thinking to address new challenges and threats to the NCUSIF." He added that it is counterproductive to refight the financial crisis battles of 2008 and 2009.
The NCUA should, among other things, declare a moratorium on the issuance of any new material rules that limit credit union activities or impose new restrictions system wide for a reasonable period of time, he said.
Additionally, he called upon the NCUA to utilize the moratorium period to scrutinize all of its rules, policies and guidance and remove or improve those that are out of date.
Once again, he said the NCUA should conduct onsite examinations as infrequently as prudently possible, pointing to an extended examination cycle for well-capitalized credit unions. "Regulatory wisdom does not reside exclusively within 1775 Duke Street in Alexandria, but should emanate from the collaborative good faith efforts of federal and state regulators," he added.
Further, he said the regulator should implement an examination appeals process by which credit unions could challenge examiner's finding in an open and accountable manner.
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