PALM DESERT, Calif.–NCUA board member Rick Metsger had a REACH for the California and Nevada leagues’ REACH Conference here.
Metsger broke down REACH this way:
R. Relevance. “As a regulator, my job is to make sure that we are relevant to the system. The system is changing and we can’t regulate as we did before. We have had to change.”
E. Efficiency, effectiveness and evolution. “We are a lot more efficient at NCUA. We’re moving examiners with different skill sets to examine different credit unions. We are reducing costs with examiners working remotely. What about you? How can you be more efficient? If you’re a member of the board or senior management team, are you evolving? Do you have a dynamic process?
A. Asset diversification. “When we passed our risk-based capital rule, it was recognizing that your asset base needs to be diverse. You have to have a safe and sound portfolio, but also reflect the diversity of your members.”
C. Capital. “Capital is king. We have a focus to make sure you have adequate capital to make sure your credit union is there next year and the year after that. But you can also have too much capital. The average capital in the credit union movement is in the high teens. If you have too much capital, you are not effective.”
H. “Honor the heritage of the credit union system. I think that is so important. There is a lot of debate that can be heated, but remember the heritage of being a not-for-profit cooperative. Whether you are a $5-million credit union or a $5-billion credit union, what’s so important is that you are cut from the same cloth. It’s not just about the mission statement on the bottom of your card that you look at once in a while. Ask yourself, especially if you are on the board, what you are doing to meet that mission statement. Don’t forget living the mission in both the services and platforms you provide.”