Thursday, November 3, 2016

Metsger: NCUA Has Not Engaged in Broad De-Risking

The National Credit Union Administration (NCUA) Chairman Metsger wrote Senator Flake (R-AZ) and Representative Luetkemeyer (R-MO) on October 31 that the agency "has not engaged in broad de-risking initiatives or activities with an individual institution or broadly through the credit union system."

Metsger stated that NCUA did not participate in the Justice Department's Operation Choke Point.

Metsger assured them that the agency is dedicated to ensuring public access to financial services.

Rather than cutting off entire categories of customers to banking services, the agency encourages credit unions to take a risk-based approach in assessing individual customer relationships.

Moreover, NCUA sent a memorandum to all field staff in August 2014 stating that it is the agency's policy that the decision to open, close, or decline an account or relationship is generally made by the credit union without NCUA's involvement.

Metsger concludes that NCUA does not dictate to credit unions, which businesses credit unions can serve, as long as the businesses are legal and within the credit union's field of membership.
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