NCUA shows support for Network Credit Union mergers

first_img 8SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr The top leaders of the National Credit Union Administration said Tuesday that they support an alternative option that would allow credit unions to merge some operations.The agency’s general counsel issued a legal opinion last week that said credit unions are allowed under the Federal Credit Union Act to merge by forming a Network Credit Union.Under the concept, credit unions could achieve economies of scale by merging some functions such as IT or a call center while maintaining their own names and some level of autonomy.Speaking at the Credit Union National Association’s Government Affairs Conference, NCUA Vice Chairman Richard Metsger said giving credit unions that option was one of his 2016 priorities.“Building on the Network Credit Union concept…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.Speaking to Credit Union Journal at the conference, NCUA Chair Debbie Matz said “it is something that can be tried, so now the ball is in the court of the credit unions that are interested.” continue reading »last_img

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