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WASHINGTON — Credit unions should aim to serve 100 millionmembers by 2015 while paying careful attention to matters offinancial soundness, NCUA Board Chairman Debbie Matz told attendeesat CUNA's Governmental Affairs Conference.

The top credit union regulator, making her first appearance atthe GAC as chairman, said her agency will remain especiallyvigilant in monitoring the financial situation of credit unionsbecause of the sluggish economy. She said the agency's scrutinywould focus on ensuring that credit unions practice due diligencewhen dealing with outside vendors and make sound decisions aboutwhich loans to keep on their books. Matz said that while she isaware of the natural tension between her agency and CUNA andindividual credit unions, the heightened scrutiny is needed.

She added that her agency “isn't overreacting” in light of thedramatic increase in the number of credit unions with CAMEL 3ratings or higher.

Matz said that once safety and soundness concerns are dealtwith, credit unions can focus on growing because “there is noreason for credit unions to remain America's best kept financialsecret.”

She said there are four areas that can drive the growth ofcredit unions: online services, which can reduce expenses andappeal to more technologically savvy consumers; short-term loans,which provide more alternatives to pay day lending; expanded memberbusiness lending; and alternative capital, which will decreasepressure on credit union capital ratios.

Matz also praised CUNA President/CEO Dan Mica for his strongadvocacy on behalf of the credit union movement and for fostering“honesty, transparency and civility” in the interactions betweenCUNA and the NCUA. Mica has announced he is leaving his positionlater this year.

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