FCUs need empowered to manage member and employee safety
Published by: Sean Brown
November 30, 2022 | Regulatory
Credit unions need regulation that not only protects the safety and soundness of the financial system, but also the safety of their members and employees. While the need to expel a member should be rare, providing a federal credit union’s executive staff and board of directors the latitude to make that decision is necessary to ensure the safety and well-being of members and staff alike. This is why when the National Credit Union Administration (NCUA) proposed new member expulsion process rules the League took the opportunity to submit a comment letter advocating for rules that empower credit unions to help them better protect their members and employees. While this update provides common-sense regulatory relief, there is more NCUA can do to help federal credit unions meet emerging realities. The League will continue encouraging the NCUA to modernize the Federal Credit Union Act to further empower federal credit union boards to maintain safety and soundness while navigating abusive and dangerous situations without sacrificing membership integrity.
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