An Agenda For Cooperative Regulatory Leadership in the 21st Century

 

By Chip Filson, Chairman, Callahan & Associates

 

1. Ensure that the regulatory institutions are comprised of experts in cooperative design. Credit unions are not banks, and regulators must be well-versed in the distinctive capabilities of the cooperative model.

 

1. Redesign a credit union liquidity system that is self-sufficient in a crisis, not dependent on institutions that lack a track record of putting cooperatives’ well-being first.

 

1. Design/ implement cooperative oversight of the National Credit Union Share Insurance Fund (NCUSIF) and reinvigorated Central Liquidity Fund (CLF) to enhance system-wide financial stability, independence and accountability.

 

1. Restore balance in regulatory analysis by ensuring that liquidity, not capital, is the primary factor that determines the health of a financial system when navigating a crisis.

 

1. Deploy examiner findings in real time to enhance industry learning and accelerate credit unions’ self-correction to sustain member service.

 

1. Improve NCUA effectiveness through innovative technology and cooperative solutions. Insurance premiums should be based on objective, timely, public data versus over-estimates of future potential losses.

 

1. Demonstrate the continuing value of financial cooperatives for America. Publish the cooperative system’s role in creating success for our local member-owners and addressing vital public financial policy priorities.