CLEARWATER, Fla.—National Credit Union Administration Chairman Mark McWatters on Wednesday fired back at
McWatters’ remarks came during a Q&A session following remarks directed at community development credit union professionals attending the
“We’re not duplicating other regulators,” McWatters said, noting that while many large credit unions can handle cybersecurity concerns in-house, smaller institutions don’t have that luxury – and current regulations prohibit NCUA from assisting those CUs.
“It’s not good when our hands are tied,” he added.
The chairman also touched a nerve when asked whether the regulator would “pledge to support new credit unions.” That question came from Alex Brower, president of New Economy Credit Union, a group trying to establish a de novo CU in Wisconsin.
“I don’t know what that means,” McWatters replied. “Yes, I support credit unions, but that said, you have to run your credit union. You have to look at your business model; it’s really not up to me to hold your hand and make sure that the doors are open.”
McWatters continued that the NCUA’s job is to regulate credit unions with “the lightest touch possible,” but that “it is a touch” given the regulator’s duty to protect the National Credit Union Insurance Shared Fund.
McWatters also fielded a question from Paul Philips, president and CEO of Freedom First FCU in Roanoke, Va.. While Philips asked about NCUA’s position on growth and deploying secondary capital, the chairman pointed out that NCUA tries to stay out of credit union operations as much as possible.
“I don’t run credit unions,” he said. “I never ran a credit union, so it’s very important that the NCUA stay away from you executing your business models. You’re the pros – you know what the specific needs are in your field of membership, who your members [are], what they need [and] how can secondary capital and supplemental capital help you better do your job. Everyone has a different story to tell. For me or anyone else at NCUA to second guess your business model, I don’t think it’s my place”
Outside of the Q&A, McWatters emphasized the positive bipartisan working relationship he has had with board member and former chairman Rick Metsger, which he said has resulted in more than two dozen substantive changes to NCUA’s structure, reducing the regulatory burden for CUs and increasing access to affordable financial services.
He also announced that more than $2 million will be spread among 203 low-income designated credit unions from the Community Development Revolving Loan Fund. Those monies will be used for digital services and security programs, as well as outreach to underserved areas, leadership development training and more.
On a similar topic, McWatters took a question on CDFI grants from
McWatters responded that CDFI grants are controlled by the Treasury Department, but he has advocated for making additional funds available to credit unions.
“If we can go [from] $2 million to $20 million, I think it’d be helpful,” McWatters said.
