WASHINGTON (12/9/15)--A “mutually beneficial” relationship between the National Credit Union Administration and the Financial Services Oversight Council (FSOC) helps the NCUA better protect credit unions and their members, agency Chair Debbie Matz said Tuesday. Testifying before the House Financial Services Committee in her role as a voting FSOC member, Matz outlines FSOC structure, operations as well as its mission.
“Speaking for NCUA, participation on FSOC has expanded our perspective, helped the agency understand the broader context for some of the emerging risks to credit unions, and improved access to critical financial and market information. FSOC also has positioned NCUA to receive and share best practices with other financial regulators. As a result, NCUA is better able to fulfill its mission of providing, through regulation and supervision, a safe and sound credit union system which promotes confidence in the national system of cooperative credit.”
The FSOC has a statutory mandate to: identify risks to American financial stability; promote market discipline; and respond to emerging threats to the stability of the American financial system.
“Through the Council’s structure, NCUA is able to regularly meet with federal and state financial regulators to discuss and identify emerging risks and consider the financial system as a whole, rather than just in constituent parts,” Matz said. “FSOC’s member agencies share information, ideas, and expertise in a way that previously did not occur, and this information has given NCUA and other FSOC members a greater perspective on the entire financial system.”
Matz added that the financial crisis demonstrated a need for the additional oversight provided by the council, and that this emphasis on stability and oversight complements the NCUA’s mission, and together they are “important in promoting confidence in the U.S. financial system.”
The hearing also consisted of testimony from Consumer Financial Protection Director Richard Cordray, as well as the heads of FSOC member agencies: Securities and Exchange Commission, Commodity Futures Trading Commission, Federal Housing Finance Agency, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency.