ST. PAUL, Minn.(12/2/10)--More than 120 midwest credit union professionals gathered to discuss the state of corporate credit unions on Tuesday during the Minnesota Credit Union Network’s (MnCUN’s) Corporate Credit Union Forum. With the aim of helping credit unions navigate through the current corporate credit union environment, the forum--held in conjunction with the Credit Union Association of the Dakotas--featured insight from six credit union panelists. Panelists provided an overview of their credit union’s corporate selection process and shared information about their experiences with the corporates. The panel was made up of individuals from credit unions conducting business with the Federal Reserve or one of three different corporate credit unions. Panelists included:
* Rick Borchardt—chief financial officer of Lake State FCU, Moose Lake, Minn.; * Dan Cumbee--CEO of Dakotaland FCU, Huron, S.D.; * Pam Finch—chief financial officer of Mid-Minnesota FCU, Baxter, Minn.; * Lynn Kothe --CEO of North Memorial FCU, Robbinsdale, Minn.; * Pat Pierce--CEO of City & County CU, St. Paul, Minn.; and * David Sawin--CEO of St. John’s CU, Little Canada, Minn.
In their comments, the panelists emphasized the importance of evaluating the credit union’s needs and choosing a corporate credit union solution based on their own due diligence. They also highlighted the current opportunities available to the credit union movement to fix the corporate system. Panelists called on credit unions need to demonstrate the principles of cooperatives and work together to find solutions to the current situation. “This session provided credit unions a forum to have an open and honest conversation about what is and isn’t working in the corporate credit union system,” said Mark D. Cummins, MnCUN president/CEO. “By pooling ideas and experiences together, the attendees were able to gain further clarity on corporate options and how the movement as a whole will be able to work its way through the current situation.” In September, the National Credit Union Administration Board took action to resolve ongoing problems to reform the corporate credit union system. One of those actions was to finalize major revisions to Part 704, NCUA’s rule governing corporate credit unions. The NCUA proposal would establish a new capital structure for corporate credit unions, including risk-based capital requirements, to provide corporates with a stronger capital base. The NCUA Tuesday announced an extension for the comment period on the agency's recently proposed amendments to its corporate credit union rules. Interested parties now have until Jan. 28 to comment. The Credit Union National Association (CUNA) last week urged the NCUA to extend the comment period, saying that many aspects of the proposal "are in need of careful review by credit unions and the agency." CUNA President/CEO Bill Cheney said that CUNA appreciates the NCUA's "responsiveness to the needs of the credit union movement for more time to fully evaluate this important proposal."