Only three of the charters were de novo credit unions. One credit union was privately-insured, state charter that flipped to a federal charter with federal share insurance.
In comparison, the agency added 90 groups with at least 3,000 potential members to existing multiple common bond credit unions, despite Congress' encouraging the agency to form new credit unions instead of adding the groups to existing credit unions.
As I wrote last year, Congress granted NCUA an exception to adding groups with at least 3,000 potential members to existing credit unions, if the agency determined that the group is unlikely to succeed as a new credit union.
The following table shows the number of new charters versus groups with at least 3,000 potential members added to existing credit unions between 2008 - 2017.
The data would suggest a bias against the formation of new credit unions by NCUA.
Do you mean to tell me that none of these groups could form a successful credit union?
Normally don’t “side” with NCUA and it’s arbitrary self serving modus.
ReplyDeleteIn this case, if I were NCUA there would be ZERO new charters.
The current CUs can handle new groups and the ability of a “de novo”cu to “make it” may be less than zero.
Congress should be shutting down NCUA not focused on de novo s....the clown show on the Hill.
Agreed. I did a de nova bank in 2007. We had to raise $30 million before our charter application would even be reviewed. I don't know what the de nova hurdle is now, but it is certainly north of that amount on the banking side.
DeleteIt is hard for any new or small credit union for that matter to offer the products and services demanded by consumers. Let alone the costs of regulatory compliance. How can a new credit union with little capital (if any) establish checking accounts with debit cards? Operate a credit card program? Not to mention run a BSA program that would keep NCUA and FinCEN happy?
ReplyDeleteWho in their right mind would do a de novo given the unpaid board and restrictions on services. It's pretty unappealing.
ReplyDeleteApparently Congress would.
DeleteBut that’s the same body of individuals that has accomplished NOTHING of real value in 30 years.
More than half of credit unions are financially not viable. A huge % are losing members.
DeleteAmerica has a huge supply of credit.
We don’t need more banks and credit unions, we need many, many fewer.
Congress sucks.
All,they do is take money from Cuna and aba and then make life worse while FINTECH gets an open door policy on our business.