ATLANTA-George Reynolds retires May 1 after 34 years with the Georgia Department of Banking and Finance. The senior deputy commissioner and former National Association of State Credit Union Supervisors (NASCUS) chairman spent time with Credit Union Journal to discuss his career, the evolution of credit unions and the supervisory role, and the regulatory challenges facing CUs.
Credit Union Journal: What roles have you played in your career with the Georgia Department of Banking?
Reynolds: I started in 1979 as an assistant field examiner, examining credit unions exclusively on a statewide basis. I drove all around Georgia, from Savanna to Atlanta. Our department then combined the credit union and banking divisions and I became a combined examiner. I moved up the ranks to senior examiner and supervisory manager, before becoming a field office district director, a role I had for 10 years. I came back to the main office as deputy commissioner, and then five years ago I was promoted to senior deputy commissioner.
CUJ: What has changed in the exam process over the years?
Reynolds: When I started, the exam process was totally manual-no computers. Reports were prepared on a typewriter and adding machine. And credit unions were a lot smaller, very much meat and potatoes institutions, simple consumer lending and deposits. The complexity of credit unions has changed dramatically over my career. There is so much more sophisticated analysis required than 20 years ago. The exam process is more of a challenge, but the fundamentals at the end of the day have not changed a great deal. It's still about trying to evaluate the overall condition of credit unions and providing constructive criticism on issues to make them stronger, safer, and more sound.
CUJ: How does that impact exams and demands on an examiners' skill?
Reynolds: When you have increasing complexity it does impact exam time, and I also think it requires that you have a more trained and experienced examiner in place in order to perform the exam function. Certainly there is a much greater emphasis, especially in the last 10 years, on training-lending training, capital markets training, and investment products training.
CUJ: What are the biggest issues facing Georgia's CUs?
Reynolds: The tremendous deposit growth will put some strain on capital levels going forward. Credit unions that are well performing and experience positive growth may have capital constraints that will impact their ability to grow.
CUJ: Reg Flex is another issue-your stance on NCUA's plan to rein in the program?
Reynolds: I am always supportive of any efforts to streamline regulation. But the current economic environment puts additional pressure on Reg Flex. Those kinds of programs, ideally, should not ebb and flow. But, unfortunately, conditions right now increase the level of vigilance needed in looking at institutions.
CUJ: What will you remember most about your career?
Reynolds: The opportunity to be chairman of NASCUS was the highlight of my career, and it was certainly a tumultuous time. We were in middle of the corporate stabilization, an extremely challenging situation and one we are still working on with state regulators and the NCUA. Also, all the associations I have had with my fellow state regulators in Georgia and around the country.
