Georgia CU Regulator to Add S to CAMEL Rating

The Georgia Department of Banking and Finance (Department) announced that beginning January 1, 2018 the Sensitivity to Market Risk, or S component will become a separate and distinct regulatory examination component, rather than a factor in the Liquidity component.

In making the announcement, the Department noted that regulatory agencies in 17 states already have added the S component to the credit union CAMEL rating system.

Adoption of S will provide greater clarity in identifying interest rate risk and allow the Department to better allocate specialized resources to address interest rate risk outliers.

The Department believes the implementation of a distinct S rating is prudent at this time.

Read the Department Bulletin.

Texas Regulator Cautions CUs About Poor Member Service

The Texas Credit Union Department in its September newsletter wrote state chartered credit unions about poor member service.

The state credit union regulator stated that it is receiving a large number of the complaints that start off about poor member service and that this trend is growing.

The Texas Credit Union Department notes:

"How a member is personally treated ... is not a regulated area, but poor member service generates complaints that credit unions nevertheless must spend time responding to and investigations. Reminding your employees that common courtesy and treating members with respect is the best policy and can save the credit union time and money."

The state credit union regulator provided tips to credit unions on how to handle upset members, such as listening to the member without interruption and being respectful.

The state regulator reminded credit unions to treat members like you would want to be treated.

Read the newsletter.

Texas Adds S to CAMEL, Where is NCUA?

The Texas Credit Union Department announced in its August newsletter that it will add Sensitivity to market risk (S) to its CAMEL rating system. As a result, the updated rating system now will be referred to as the CAMELS rating system. The revised rating system will be used on all examinations beginning on or after September 1, 2014.

Texas joins credit union regulators for the states of Connecticut, Michigan and Maine, which have added “S” to the CAMEL.

However, not all state credit union regulators are pushing forward with adding S to CAMEL rating system. For example, the Kansas Department of Credit Unions in its third quarter newsletter has decided to wait until NCUA moves forward.

It appears that the ball is in NCUA's court.

NCUA needs to exhibit some leadership and move forward with adding Sensitivity to market risk to its CAMEL ratings system like the other federal banking regulators and state credit union regulators.

Alabama CU Regulator: Four Employees Suspended at Alabama One, Interim CEO Appointed

The Alabama Credit Union Administration has suspended four employees with Alabama One Credit Union in Tuscaloosa as part of a fraud investigation.

An interim CEO has been appointed at Alabama One Credit Union according to Larry Morgan, Administrator for the Ala. Credit Union Administration.

Read the story.

Vermont CUs Can Use the Term Bank in Ads

On October 5, the Vermont Department of Financial Regulation ruled that a state chartered credit union can use the terms “bank” or “banking” or derivative terms or phrases in advertisements. However, a state chartered credit union is required to disclose that it is a credit union. The disclosure that a state chartered credit union is a credit union will be clear and conspicuous so that reasonable consumers can read, see or hear and understand the information.

To read the order, click here.

Texas Credit Union Department Proposing to be Reimbursed for Excessive Cost from Problem Credit Unions

The Texas Credit Union Commission is proposing that a credit union that engages in questionable behavior be responsible for the excessive cost it imposes on the Texas Credit Union Department. The proposed rule, according to the Commission, is designed to ensure that the Department’s fees and assessments are more equitable for all credit unions. To read the proposed rule, click here.