WASHINGTON-NCUA outlined four potential futures for the corporate credit unions that have been taken into conservatorship. The question now is which of these alternatives will win out. The four alternatives for member credit unions are:

NCUA has said it is already looking at a P&A for Constitution State Corporate, but that still leaves the door open for the other conserved corporates. "Because the capital requirements (in the new corporate rule) are quite high and are tied to assets and are hard to get, corporates will have to operate with much smaller balance sheets than in the past. They will be agents working on a fee basis, rather than financial intermediaries working on balance sheet margins," said CUNA Economist Bill Hampel. "It's way too soon to tell how this will all shake out, but we know there will be substantial consolidation among corporates. Some of these very large corporates have big payment settlement infrastructures that credit unions likely will want to maintain." While it's too soon to say for sure which options the 4,600 credit unions that are served by the five conserved corporates will choose, there are some factors that at least point away from one of them.

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