The National Credit Union Administration’s effort to require succession planning has raised questions about whether the agency is micromanaging smaller institutions that may not be able to absorb the added cost of compliance.
The National Credit Union Administration would require federally chartered institutions to have a plan in place to replace key positions amid concerns over consolidation and the aging of credit union leadership.
The industry generally likes a National Credit Union Administration plan that would count Treasury funds as secondary capital. But it opposes the exclusion of 30-year investments under the the Emergency Capital Investment Program, which credit unions say are essential to revitalizing Black and Hispanic communities.