Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

U.S. credit union regulator announces plan to shrink, reorganize

Published 07/21/2017, 04:54 PM
Updated 07/21/2017, 05:00 PM
© Reuters.  U.S. credit union regulator announces plan to shrink, reorganize

WASHINGTON (Reuters) - The U.S. regulator of credit unions will soon close some regional and agency offices and reorganize others, as it works to cut costs and respond to changes in the industry, according to an announcement released on Friday.

"Months of very hard work by agency staff have produced a solid, commonsense plan that will help the agency respond to a new economic environment," said Rick Metsger, a board member of the National Credit Union Administration (NCUA), which oversees the country's nearly 6,000 credit unions.

Since at least 2011 the number of credit unions, non-profit financial cooperatives that are owned and controlled by members, has consistently shrunk each year. At the same time, the unions' membership, asset levels, and loans have grown, data from the Credit Union National Association, a trade group, showed.

The result is a more concentrated system dominated by fewer, but larger, institutions than in the past.

Like banks, the unions take deposits and provide loans.

The regulator, currently functioning with only two board members, must position itself "to meet the changing demands" while "promoting efficiency and effectiveness," NCUA Chairman Mark McWatters said in a statement.

The NCUA plans to close its Albany, New York, and Atlanta, Georgia office, and cancel four of its five leased facilities.

It will also "eliminate agency offices with overlapping functions and improve functions such as examination reporting, records management, and procurement," according to the announcement, as it banks on a reduction in workers by attrition.

The plan also foresees restructuring the examination and insurance office into specialized working groups. Full details, along with projected cost savings, will be posted in the fall.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Earlier this week, the agency's chief financial officer said in a report to the board it was on track to cut spending by $5.8 million this year, with a little more than half of those savings coming from reductions in compensations, a hiring freeze, and employee turnover and attrition.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.