Friday, October 9, 2009

NCUA Offers Guidance on Converting to a Credit Union

NCUA has posted on its website information on bank-to-credit union conversions.

NCUA writes: “While unusual, such conversions may be possible for some financial entities. This document provides guidance on various issues that may arise when a non-credit union entity (NCE) is considering conversion to a credit union charter.”

NCUA does acknowledge that it would be quite difficult for a stock organization to change to a credit union charter.

The document explains some unique characteristics associated with the credit unions, such as field of membership requirements, volunteer directors, and lending practices.

I find it quite ironic, even unseemly, that an agency that has gone out of its way to erect obstacles limiting credit unions from exercising their freedom to select the charter that best meets their customers’ needs would post on its website a resource guide on how other financial institutions can become a credit union.
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