WASHINGTON -
The NCUA letter to Treasury Secretary Henry Paulson, noted that the unique structure and operation of credit unions as financial cooperatives require a regulator that recognizes those attributes.
NCUA sent the letter in response to a request by Treasury for comment on the regulatory structure of the country's financial institutions and whether improvements are needed. The request followed a Government Accountability Office (GAO) study released in October of this year that called for consolidation of the financial institution regulators.
"The current regulatory structure for all depository institutions has effectively met the needs of the regulated industries and resulted in innovation, leading ultimately to better products, services and choice for the American consumer," wrote NCUA Chairman JoAnn Johnson. "One concern with the structure (as noted in the GAO report) is the blurred lines of oversight due to changes in the financial industry. The regulators have made changes to address the blurred line between services and are working together through interagency committees to address common issues."
In its letter, NCUA also recommended that all of the financial institution regulators be maintained as separate entities due to the "specialized attention" that the various types of institutions require.
