CINCINNATI -- A regulator blamed for "micromanagement" on the part of his examiners demonstrated an open mind at last week's conference of the Credit Union National Association.
According to one credit union joke, the "D" in D. Michael Riley stands for "damn." But the director of examination and insurance for the National Credit Union Administration was far from the "detail devil" he has been portrayed as.
A Horror Story
During a session entitled, "Are Regulators Running Credit Unions?" Mr. Riley listened quietly to complaints, admitted that some examiners have made mistakes, and talked of steps the NCUA is taking in an effort to get credit unions more involved in determining examination policies.
Kathryn Leavitt, president of Virgin Valley Credit Union in Mesquite, Nev., drew sympathy when she told of how her institution had to sign a letter of understanding and agreement to drop dividends and stop growth despite a high capital ratio and a 2 Camel rating, the second-best rank on a scale of 5.
|We Were Intimidated'
She also said the examiner tried, unsuccessfully, to get the board to replace her.
"We were intimidated," she said.
In response, Mr. Riley said, "Some of our examiners overemphasize safety and soundness."
He added that the agency frowned on requiring letters of understanding from credit unions with high Camel ratings.
Cooperative Efforts
The agency is looking to work more closely with credit unions, Mr. Riley said.
He noted that the NCUA has brought in credit union managers to teach examiners their view of how credit unions work, and plans for further collaboration with management.
To Review Evaluation System
The NCUA is also looking to communicate faster and more efficiently with credit unions about its examination decisions.
The agency will also review its system of evaluating credit unions, Mr. Riley said.
"There is need for us to work together," he said.
"The culture of NCUA is changing from what was needed to survive the '70s and '80s to what we need to survive for the year 2000."
