The Art Of Doing Business: Finances, Taxes, The Economy and Profits

April 9, 2010, Alexandria, Va. – Responding to questions after speaking to 800 officials
at the Texas Credit Union League Annual Meeting in Grapevine, Texas, National Credit
Union Administration Chairman Debbie Matz provided further insights into the future of
the corporate credit union system.
Matz predicted that some changes will result from NCUA’s rule to strengthen corporate
credit unions’ regulation, while other changes will result from natural market forces.
“The capital thresholds in NCUA’s proposed rule will be attainable for some corporates,”
Matz explained. “Other corporates will need to find a new business model.”
Matz acknowledged that some corporates have already begun discussing mergers. “We
will eventually see a shakeout in the corporate system,” Matz observed. “There will be
fewer corporates, but stronger corporates.”
In the meantime, Matz emphasized measures that NCUA has taken to stabilize the
corporate system. She reminded that NCUA continues to guarantee all shares in
corporates above the traditional federal insurance limit. “This ensures that your credit
unions’ investments in corporates are backed by the full faith and credit of the United
States government,” Matz affirmed.
Matz set a goal to finalize the corporate rule by this summer, after announcing a plan to
dispose of corporates’ “legacy assets.”