ARLINGTON, Va.—Lucy Ito, the new president and CEO of the National Association of State Credit Union Supervisors (NASCUS), sees the state charter system as an underappreciated asset in credit unions, and is out to change that.
“I have always observed that state-chartered credit unions and the state-charter system have been the drivers of innovation, and that has always been good for the credit union movement,” said Ito, citing innovations in field of membership, loan participations, CUSOs, investments and MBL authorities, and other areas that were led by state charters. “It’s often been state-chartered credit unions that have pushed for those advances, and those then spread to federal credit unions.”
Ito, who comes to NASCUS after 10 years with the California and Nevada Credit Union Leagues, said she has come to appreciate the “synergy that can exist between the regulators and the regulated credit unions.”
NASCUS is unique in that both constituencies comprise its membership.
“I was influenced by the risk based-comment letter that NASCUS wrote,” said Ito. “It really showed how the regulators and credit unions can collaborate.” That letter, said Ito, showed how the two components of NASCUS’ membership, regulators and state-chartered credit unions, could craft a perspective that spoke to both the safety and soundness perspective of regulators and the financial market perspective of credit unions. The comment letter can be found here.
“Big picture, I believe the state-chartered system creates the best opportunities for American consumers and small business to make advancements for the benefit of both,” said Ito.
Ito, who also was with the World Council of Credit Unions prior to her position with the state league, said she had previously worked with regulators while at the league, including the Advisory Committee of the Department of Financial Institutions in Nevada, and what is now the California of Department of Business Oversight.
As she takes the lead in NASCUS, Ito said she has heard “loud and clear” from the board that it wants to increase the visibility of the group.
“There is a perception that NASCUS is for supervisors only, and that’s just not the case,” said Ito. “We want to educate people that NASCUS is for the benefit of state charters and for the benefit of federal charters, too. Federal credit unions should recognize that the dual chartering system helps federal credit unions. “
Ito said NASCUS has 100% affiliation from state regulatory agencies, and her goal is to build membership among state-chartered credit unions. She also wants to ensure the collaborative “give and take” with NCUA is preserved.
Ito said other goals include:
- In instances where there is a gap between the powers granted in a particular state’s CU Act and federal powers, Ito said she wants to work to ensure that state Act is at least equal to if not more effective than the FCU Act.
- Similarly, said Ito, she wants to see state-to-state parity, so in cases where one state’s Act doesn’t offer what’s available in other states, other state Acts can be cited as a precedent and example to help achieve that parity.
- Ito wants to draw attention to and celebrate NASCUS’ 50th anniversary in 2015. The group will hold its annual meeting Oct. 20-22 in New Orleans.
“I would love for state charters to grow, but my dream is much broader; I want federal charters to benefit too,” she said.