WASHINGTON (2/13/15)--CUNA will launch a comprehensive study and fact-based analysis of the actual compliance costs credit unions face due to regulatory burden. Wally Murray, president/CEO, Greater Nevada CU, Carson City, Nev., announced the initiative in his testimony before the Senate Banking Committee in a Thursday hearing on regulatory relief.
"I have heard many times from members of Congress and regulators that they are looking for more data about the cost credit unions are forced to bear related to regulatory compliance," said CUNA President/CEO Jim Nussle. "While the study has been in the works for a while, at a Senate Banking Committee hearing Tuesday, several senators repeatedly asked a panel of banking regulators and NCUA's Larry Fazio about regulatory costs. No one had a good answer. So we thought Wally's testimony offered the perfect opportunity to make our announcement."
The assessment is intended to be used as an informational resource for policymakers about the full cost of regulatory requirements. Having dollar figure for compliance costs will allow CUNA to advance regulatory relief in the legislative and regulatory arenas.
Sen. David Vitter (R-La.) asked witnesses at the Tuesday hearing for specifics when it came to compliance costs, and bank regulators said they could only provide anecdotal information.
Members of the Senate Banking Committee also asked about compliance costs in a regulatory relief hearing Thursday, at which CUNA testified.
CUNA has engaged Cornerstone Advisors, Inc. to review operational, strategic, financial and member impacts of regulations that have come in the post Dodd-Frank Act era.
Cornerstone's efforts will be conducted in two phases. The first will see it perform in-depth analyses of three credit unions of different sizes to see how regulations and regulatory compliance affect operations and costs.
The second phase involves Cornerstone using the information gleaned during the first phase to create a survey that all credit unions can complete, which will gather information about compliance and other regulatory costs facing credit unions today.
The overall process is expected to take from six to eight months.
Cornerstone Advisors is a nationally recognized management consulting firm that specializes in the financial services industry. For the past 15 years, the Cornerstone team has been researching and delivering leading industry benchmarking studies for both credit unions and banks.
The project will be led by Vincent Hui, an experienced financial services executive and Steve Williams, who will be facilitating this year's CUNA National Credit Union Roundtable.