ALEXANDRIA, Va. (12/19/13)--Reassessing and retooling the credit union business model to stay ahead of the curve is one of many priorities laid out in the National Credit Union Administration's draft 2014-2017 strategic plan.
The agency said the plan outlines how it will address "a growing system where credit unions are offering new services, engaging in greater portfolio diversity, and presenting new risk challenges."
Coming challenges cited in the plan include:
- More and different products;
- Diversified holdings;
- Growing real estate concentration;
- Rapid changes in technology;
- Escalating threats to cyber-security; and
- Increasing member business loan portfolios.
"Each of these are risks that require continual monitoring and mitigation strategies," the NCUA said.
To deal with these risks, the NCUA plans to continue to modernize its regulatory approach to create a framework "that encourages innovation while protecting safety and soundness." Ensuring the progress of the credit union system "while continuously protecting the consumer's rights and benefits, effectively overseeing the credit union system, and insuring nearly 96 million members' deposits in federally insured credit unions" will be another agency focus, the NCUA said.
Legislative goals detailed in the draft plan include:
- Providing the NCUA with vendor authority through statutory changes that achieve parity with the other federal financial regulatory agencies to regulate, examine, and take enforcement actions against vendors and Credit Union Service Organizations;
- Restoring the NCUA's access to back-up liquidity by re-establishing NCUA's emergency borrowing authority of $30 billion which sunset on December 31, 2010, and revising Title III of the Federal Credit Union Act to modernize the Central Liquidity Facility; and
- Improving the NCUA's ability to manage the National Credit Union Share Insurance Fund by providing more flexibility in setting the normal operating level and building retained earnings for the NCUSIF in a manner consistent with the size and complexity of the credit union industry and financial stability goals.
For the full draft plan, use the resource link.