NCUA Board Member Tanya F. Otsuka at a meeting of the NCUA Board.
As Prepared for Delivery on December 17, 2024
Happy Holidays everyone. I hope our staff, and those in the audience here and virtually, take some time over this season for some well-deserved rest, relaxation, and reflection.
On that note, John, Ariel, and Kelly, thank you very much for your presentation on the final rule to implement succession planning for federally insured credit unions. I appreciate the work you and your colleagues in the Office of General Counsel did in crafting today’s final rule. And thank you Chairman Harper for championing this rule that will improve the longevity of our credit union system and strengthen small credit unions.
I support the final rule, which reflects feedback from many commenters. It is non-prescriptive and still gives credit unions much latitude in determining a succession plan that best suits them.
On that note, I would like to once again encourage MDIs to account for their designation as they draft their succession plans.
Our mission of providing credit to people of modest means is dependent on the presence of credit unions in rural areas, small towns, and other communities that would otherwise be banking deserts. As I mentioned at the July board meeting when we first issued the proposal, a sudden departure, difficult recruiting for vacant positions, or a lack of leadership at credit unions can result in financial and operational problems, which hurts members and puts the viability of the institution at risk.
To this end, I encourage small credit unions and MDIs to share how else the NCUA can help them think about their long-term continuity plans. For example, our new crop of high school and college graduates and community and business leaders should see viable careers in the credit union industry.
I welcome ideas and am happy to work with staff and stakeholders to promote the field and ensure the success of the next generation of credit union leaders.
Thank you. I’ll turn it back to Chairman Harper.