ALEXANDRIA, Va.-The NCUA Board last Thursday proposed requiring that all CU Service Organizations-the credit union subsidiaries that provide everything from card processing to real estate brokerage services-file annual financial reports giving the federal regulator greater monitoring power over some 650 CUSOs.

NCUA said the proposal would give it additional means to monitor the risks the CUSOs pose to both individual credit unions and the credit union system, with some CUSOs serving hundreds or even more than 1,000 credit unions. "With this controversial proposal we are in some ways breaking new ground," said NCUA Chairman Debbie Matz. "(But) this rule is fundamental to monitoring the safety and soundness of the system."

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