McLean Hosts Dialogue with NCUA East Region Director
This week, the Cooperative Credit Union Association hosted a virtual gathering featuring John Kutchey, the East Region Director of the National Credit Union Administration (NCUA). Engaging over 100 credit union leaders, the discussion delved into the NCUA's 2024 examination priorities, initiatives, and outlined the agency's strategic vision for the upcoming year.
A focal point of the dialogue centered on the NCUA's heightened emphasis on consumer financial protection, positioning it as a paramount objective. Notably, the agency has reallocated its budget to incorporate consumer compliance specialists, marking the first such initiative since the early 1980s. Anticipated is a broader financial regulations program, with a specific focus on addressing concerns surrounding overdraft, slated for review in late February or March. Regarding interest rate risks, the NCUA views interest rate swaps as a viable option, cautioning against market prediction attempts. Instead, they advocate for constructing a resilient portfolio capable of withstanding market fluctuations. As credit unions explore artificial intelligence, the NCUA advises a gradual and meticulous implementation, drawing parallels to managing an employee. Additionally, the significance of liquidity is underscored, with some credit unions contemplating restructuring and challenging decisions to fortify their liquidity levels.
Director Kutchey emphasized the necessity of diligently monitoring various loan products to track assets on the lending side. Expressing concern about real estate values, he highlighted the upward trajectory in rates over the past few years, attributed to a shortage of supply. For those who may have missed the event, the recording of the webinar is now available for access.
