ALEXANDRIA, Va. (7/5/12)--Credit unions continued to demonstrate stability and resilience as the National Credit Union Administration (NCUA) worked to strengthen the foundation of the credit union system, the NCUA said in its 2011 Annual Report.
The report, entitled Foundation for the Future, noted that credit union membership increased by 1.3 million during the year, according to NCUA numbers. Delinquencies decreased, and credit union income increased by 41.2% during 2011, the agency added. Another key indicator--return on average assets--climbed to 68 basis points (bp) by the end of the year, an 18 bp increase from 2010's total. The number of credit union failures also declined in 2011, the NCUA added.
The NCUA in the report also highlighted its regulatory modernization work, which addressed safety and soundness risks while lessening regulatory burdens.
The report also detailed the agency's 2011 regulatory actions, which included approving regulations that aim to:
- Strengthen the corporate credit union regulatory framework;
- Enhance the financial literacy of credit union directors;
- Improve low-income designation procedures;
- Ease access to the Community Development Revolving Loan Fund; and
- Resolve credit union failures at reduced costs.
The NCUA's work on interest rate risk, troubled debt restructurings, emergency liquidity and regulatory flexibility was also noted in the report.
The report serves as the agency's official report to the President and Congress, and covers NCUA and credit union operations. The report also tabulates 10 years of financial trends for credit unions and the National Credit Union Share Insurance Fund.
For the full NCUA report, use the resource link.
The Credit Union National Association's Examination and Supervision Subcommittee will be reviewing the report and following up on issues of concern, and will emphasize that credit unions still are burdened by regulations, despite the agency's regulatory modernization work.