AUSTIN, Texas (7/19/13)--Texas state-chartered credit unions will be told what their CAMEL codes are, beginning in September, the Texas Credit Union Department said Wednesday.
"[The move] is just a byproduct of the fact that we haven't disclosed CAMEL codes for several years, but the National Credit Union Administration does [to credit unions]," Robert Baxter, chief examiner for the Texas Credit Union Department, told News Now. "So we thought it was good for credit unions to know where we were coming from.
"We are getting credit unions who did not know they were a problem to get on board," he added. "It was time to start changing policies and important for us to be in the driver's seat."
The CAMEL rating system is NCUA's method of evaluating the health of credit unions. The rating, adopted by the NCUA in 1987, is based upon five critical elements of a credit union's operations: (C) Capital, (A) Asset quality, (M) Management, (E) Earnings and (L) Asset liability management.
"Sharing the CAMEL codes with boards of state-chartered credit unions will benefit Texas credit unions," Suzanne Yashewski, senior vice president and regulatory compliance counsel for the Cornerstone Credit Union League, told News Now. "CAMEL codes provide the board and management a metric to help monitor critical areas and recognize success."