Should you consider a network credit union?
Should you consider a network credit union? For those of you looking for a middle ground between a merger into a larger credit union or trying to stay alive in an increasingly competitive environment, I have some good news for you this morning, or at least news that should spark your curiosity.On February 17th NCUA officially released a legal opinion letter authorizing the creation of a network credit union. This is the most important statement NCUA has made so far about letting multiple credit unions join together in a unified structure while maintaining their individual identities. Under the approach analyzed by NCUA, credit unions in Indiana are planning on becoming a single credit union with a unified board of directors. But the credit unions want to keep their individual identity as well as continue to have the ability to impact the direction of the credit union.First, NCUA opined that the merged credit union could continue to operate and serve members under their old credit union name so long as members understand they are dealing with one credit union rather than multiple ones. The merged credit unions could refer to themselves under their own name “a division” of the new network credit union.The second issue when creating a network credit union is how to create the merged entity while continuing to let the old credit unions have a role in the direction of the merged operation. NCUA opined that the unified board could be empowered to appoint committees comprised of officials from the merged credit unions to serve in an advisory capacity. Finally, NCUA opined that the continuing credit union could reserve one seat on its nominating committee for a member of the merged credit union. continue reading » 4SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr