Credit unions should revamp their governance rules to ensure that there is increased accountability and less likelihood of improper behavior because of tighter NCUA rules governing board members' actions, CUNA Mutual Group Vice President of Commercial Products John Wallace said Thursday.

Wallace, who made the remarks during a speech at the National Directors' Convention in Las Vegas, said the changes are needed because of new NCUA rules increasing financial literacy requirements for board members and limiting how much federal credit unions can indemnify board members.

He said that improved governance programs include "a set of processes, customs, rules, policies and laws that guide how an organization, like a credit union, is directed and controlled for the benefit of its stakeholders." These could include establishing a lead director on governance, a whistle-blower policy or a risk oversight policy, he said.