Matz
Announces Creation of
Small Credit Union Working Group
May 2, 2003, Alexandria VA – National
Credit Union Administration (NCUA) Board Member Debbie Matz
today announced the creation of an internal working group to
focus on small credit union issues. “Small credit unions,
those under $10 million, are the icons of the credit union
movement; they are what many people think of when they think
of credit unions. They also represent over 50 percent of all
federally insured credit unions. However, they face unique
challenges,” Matz said.
“At NCUA’s Strategic Leadership Summit in January,
a panel of small credit union managers discussed their concerns
and expressed a need for policies geared to smaller institutions. As
a result, I proposed an internal working group to pursue these
issues and identify problems peculiar to small credit unions
and possible options to increase their competitiveness and
financial stability,” Matz announced.
According to Matz, “Small credit unions are disappearing
at an increasing rate. We’ve already lost more than 90 credit
unions in the first quarter of this year compared to 312 for
all of last year. In most instances they shut their doors
because they cannot meet the service needs of their members
and continue to attract new members in a high-tech environment. Yet,
in some communities, they are the only insured depository institution
and play distinctive roles in combating predatory lending,
offering basic services to the unbanked population and providing
financial education to their membership.”
“The working group will explore strategies that
can enhance the competitiveness of small credit unions and
determine the appropriate role for NCUA in small credit union
activities,” said Matz. “NCUA’s Small Credit Union Program
already provides assistance to many small credit unions. But
the full range of possibilities will be examined in a systematic
manner to identify potential relationships and activities that
are both practical and beneficial to small credit unions.”
Matz noted that “changes in the credit union and
financial service industries that are sometimes considered
routine can have a magnified affect on small credit unions. Corporate
credit union consolidations, the expansive fields of membership
of some community charters, and the growing prevalence of electronic
financial transactions are factors that can have a major impact
on small credit unions. The working group will attempt to
identify such factors and look for ways to prevent or mitigate
adverse consequences for small credit unions.”
“I look forward to participating with the working
group in this strategic examination of small credit union issues. We
will prioritize the issues and develop recommendations for
consideration by NCUA and the credit union community,” said
Matz.
Members of the working group include: Dan Gordon,
Office of Strategic Program Support and Planning; Kim Iverson,
Office of Examination and Insurance; Adrienne Munroe, Region
II; Carl Banks, Region V; Charles Brandon, Region III; Nick
Sanimarco, Region I; John Dock, Region VI; Nancy Padilla and
Anthony LaCreta, Office of Credit Union Development; and George
Curtis, Office of Corporate Credit Unions. The working group
will hold its initial meeting by videoconference on Tuesday,
May 6.
A 23-year public service veteran, Matz is a member
of three credit unions and resides in McLean, Va. with her husband and two children. Before her appointment to the NCUA
Board, Matz was appointed by President Clinton as Deputy Assistant
Secretary for Administration in the Department of Agriculture.
The
National Credit Union Administration, governed by a three-member
board appointed by the President and confirmed by the Senate,
is the independent federal agency that regulates, charters and
supervises federal credit unions. NCUA, with the backing of
the full faith and credit of the U.S. government, operates and
manages the National Credit Union Share Insurance Fund, insuring
the deposits of more than 80 million account holders in all federal
credit unions and the overwhelming majority of state-chartered
credit unions.
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