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The National Credit Union Administration board will consider a proposed rule governing succession planning at credit unions on Jan. 27.
Details about the proposal were not available, since the agency has a policy of not releasing information about agenda items prior to board meetings.
However, NCUA Chairman Todd Harper said at an African American Credit Union Coalition town hall in November that he and his fellow board members were working on the rule.
At that time, Harper said that one of the reasons why many credit unions have merged is the lack of succession planning. He added that one in five credit unions lack CEO succession plans.
Harper said that some data indicates that a large percentage of credit union executives are Baby Boomers who will be part of a retirement wave that already has started. “With these retirements, flat budgets, and tight labor markets made even tighter in the wake of the pandemic, there is a real need for credit unions of all sizes to focus on succession planning, especially if we want to curtail credit union mergers,” Harper said.
He added, “If we want to ensure small credit unions can thrive in the marketplace and in their communities, then we need to address the lack of succession planning within the industry.”
At its Jan. 27 meeting, the board also will receive briefings on the agency’s supervisory priorities and the impact that the expiration of pandemic-related credit union measures will have on the industry.