August 3, 2012 ● Volume 01, Issue 31
View 08-03-12 issue of The Pulse
Credit Union News
Key credit union issues to be discussed at Fall Conference
The constantly changing and evolving financial services marketplace presents credit unions with a number of challenges and opportunities. MnCUN's Fall Conference on Sept. 7-9 will focus on the movement's current issues and provide attendees the knowledge and tools to take their credit union to the next level.
At the conference, industry experts will give attendees a new perspective on their credit unions' current struggles and successes. Some of the conference's educational sessions will include:
VAP – 420: Growth Strategies: Pathways to Success – Geared toward volunteers, this course will examine the directors' role in helping the credit union grow membership, loans and assets.
Generating Non-Interest Revenue – This session will discuss the changes credit unions will need to consider to ensure they have the revenue needed to serve the next generation of credit union members and beyond.
Economic Forecast for 2012 and Beyond – CUNA Chief Economist and Senior Vice President of Research & Policy Analysis Bill Hampel will provide attendees with his expert perspective on the economic future and how it will impact credit unions.
Ethics in Banking – During this session, attendees will discuss the principles of banking ethics, including confidentiality, conflict of interest, whistle-blowing, protection of credit union data and information and more.
To learn more about the conference's educational session, visit the Fall Conference page of the Network website. In addition, this page includes online registration and a printable brochure. Be sure to register by Tuesday, Aug. 7 to take advantage of the $90 early bird discount!
NCUA announces stabilization fund assessment of 9.5 basis points
Following the July 24 board meeting, the NCUA announced that credit unions will be charged a 2012 Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessment of 9.5 basis points (bp) of their insured shares as of June 30. The TCCUSF assessment is expected to bring in $790.5 million in funds to help cover the costs of corporate credit union stabilization.
Invoices for the assessment will be mailed to credit unions in September, and payment will be due by Oct. 9, the NCUA said. Credit unions should show the TCCUSF assessment as an expense in August and report it on the September 2012 Call Report. The assessment will reduce the aggregate net worth ratio of all credit unions from 10.01 percent to 9.96 percent, with an average 6 basis points decline, according to the NCUA. A total of 335 credit unions will not post net income this year as a result of the assessment costs.
More information about the assessment can found in the Letter No. 12-CU-09: 2012 corporate stabilization fund assessment article in this issue of The Pulse.
NCUA to host free webinar on liquidly & CLF changes
The NCUA will host a free webinar on Tuesday, Aug. 14 at 1 p.m. discussing upcoming changes in Central Liquidity Facility Ownership and the proposed rule on access to emergency liquidity. The webinar titled CLF and Your Credit Union's Contingent Liquidity will be hosted by NCUA Division of Capital Markets Director and Central Liquidity Facility (CLF) President Owen Cole.
During the session, Cole will provide updates on the upcoming changes in the ownership of the CLF, the CLF's role in meeting credit unions' contingent liquidity needs, and issues around the proposed rule on access to emergency liquidity. Before the webinar, participants are encouraged to review the NCUA's frequently-asked questions about the CLF, which it will release in a Letter to Credit Unions with the next week. Participants can also submit questions in advance by emailing the NCUA at WebinarQuestions@ncua.gov. The subject line should read "CLF and Your Credit Union's Contingent Liquidity.”
More than 6,000 natural person credit unions will lose access to the CLF, which serves as a liquidity lender to credit unions in need of emergency funding, when U.S. Central Bridge Corporate CU closes in late October. In anticipation of this closing, the NCUA last month proposed a new emergency liquidity access rule.
The new proposal, which will remain open to public comment until Sept. 28, would require credit unions with less than $10 million in assets to maintain basic written emergency liquidity policies. Federally insured credit unions (FICUs) with assets of $10 million or more would be required to develop contingency funding plans describing how their credit union would address liquidity shortfalls in emergency situations. FICUs with assets of $100 million or more would be required to have access to a backup federal liquidity source for emergency situations. More information about the proposed rule can found in the NCUA publishes a Notice of Proposed Rulemaking regarding access to emergency liquidity article in this issue of The Pulse.
For more information and to register for this free webinar, visit the Event Calendar section of the Network website.
Nominate a colleague for Minneapolis/St. Paul Business Journal's CFO of the Year Award
The Minneapolis/St. Paul Business Journal is now accepting nominations for its CFO of the Year Award. This award recognizes CFOs in the Twin Cities for their outstanding performance as corporate stewards.
The awards will be presented in eight categories, and honorees will be recognized for the roles they play in their respective organizations' growth and profitability. Nominees should have an impressive professional track record, leadership experience and a history of community involvement. The award will highlight the growing importance of financial executives in today's corporate environment.
Nomination forms can be obtained from the Minneapolis/St. Paul Business Journal website. Nominations are due Friday, Aug. 10.
Credit union notes…
North Memorial Federal Credit Union welcomed Dana Garrett as its new President & CEO on July 25. Garrett has more than 16 years of credit union experience, working as a member service representative, loan officer, branch manager and vice president of operations. She most recently served as the CEO of N.W. Iowa Credit Union. Garrett replaces Lynn Kothe, who retired from the credit union in June after serving as its President/CEO for 34 years.