ALEXANDRIA, Va. - The top credit union regulator told a group of Pennsylvania institutions last month that competition within the industry should be curbed.

Norman E. D'Amours, chairman of the National Credit Union Administration, acknowledged that a certain level of competition was healthy, but he said too much jockeying for position would undermine the industry's cooperative roots and endanger its tax exemption.

"We have to be very careful that we don't allow too much competition in the system because we're a cooperative system and once we get competitive, it's over," the regulator told a group of about 30 Keystone State credit union executives on Nov. 28.

To that end, the NCUA intends to look at its rules governing mergers and membership overlaps.

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