WASHINGTON (2/24/13)--National Credit Union Administration board member Michael Fryzel, addressing the "Defense Issues 2014" meeting hosted here Sunday by the Defense Credit Union Council, advised his credit union audience that the industry must learn from the past, but not be locked into the past, when facing challenges ahead.
"As credit unions and the entire financial service industry continue to change, we need to look forward," Fryzel said. "Use the past as a relevant guide, improve and sharpen your tools based on experience, but do not assume for a minute that future challenges will bear any resemblance to past problems.
"The Federalist Papers asked what I think is a critical question," Fryzel said. "Are we capable of establishing good government through reflection and choice, or are we destined to make decisions by accident and force? I sincerely hope it is the former path, illuminated by serious, smart thinking and reasonable application of experience and knowledge."
Also during his remarks, Fryzel praised DCUC member credit unions for serving those who serve in the nation's armed services, for helping expand the middle class, and for demonstrating the importance of cooperative credit unions to the country's economy.
Fryzel also detailed his agency's efforts that marked its response to the country's recent financial crisis and how the NCUA has "applied the tough lessons learned from the market meltdown" to current regulation and supervision. He reiterated his call for "right-sizing" regulation.
As he first said in November to the more than 110 attendees at the American Association of Credit Union Leagues' (AACUL) 2013 winter meeting in Palm Beach, Fla., regulations should take "neither an overly stringent nor an overly permissive approach" as to rules--and he cited risk-based capital rules as needing the 'right-sizing' approach.
The DCUC's "Defense Issues 2014" was a full-day meeting held here in conjunction with the Credit Union National Association's Governmental Affairs Conference, which kicked off Sunday.
Use the resource link for the full text of Fryzel's remarks to the DCUC.