Credit unions share concerns with NCUA’s Harper on succession planning proposal

The NCUA’s succession planning proposal was the focus of a credit union meeting with NCUA Chairman Todd Harper Wednesday. America’s Credit Unions, state Leagues, and 27 credit unions took part in the discussion, providing an opportunity to expand on comment letters filed on the issue.

NCUA’s proposal would require credit unions to establish and adhere to processes for succession planning. America’s Credit Unions believes it is inappropriate as a regulation, though it may be helpful to some credit unions as guidance.

The comments—developed after extensive conversations with member credit unions—also noted succession planning is an important component of a credit union’s strategic plan, and that NCUA examiners already review a credit union’s succession planning as part of the management component of the CAMELS rating system.

During the discussion, credit unions reiterated calls for guidance over regulation, as well as offered suggestions on how the agency can improve the proposal. For example, it was noted that certain aspects of the proposal, such as the requirement for succession plans to include expected vacancy dates, are problematic and potentially unworkable for some. Instead, participants offered solutions to increase flexibility into the process while still maintaining the benefits of succession planning, which most agree is important for credit unions to address.

 

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