BOSTON–Some of the regulatory challenges facing credit unions were outlined during a panel discussion here.
During the World Credit Union Conference here, WOCCU Advocacy Counsel Panya Monford advised those in attendance to be aware of one specific area in which the Basel Committee on Banking Supervision is taking a renewed interest.
“A lot of credit unions just don’t have the resources right now to assess their corporate governance or risk management needs, but that’s something that you all have to start paying attention to, especially with Basel making that a renewed mission,” Monford told the meeting.
A ‘Regulatory Tsunami’
Barry Harrington, head of advocacy and regulatory engagement for the Irish League of Credit Unions, said credit unions in that country and the rest of the European Union are facing a “regulatory tsunami” at the moment, with a new regulation on instant payments taking effect in 2025.
“From January, credit unions or payment service providers—of which credit unions are part—will have to be capable of receiving instant payments, and by October of next year, of being able to send instant payments,” Harrington said. “We’re very much in favor of it but there is a cost, an investment cost to credit unions, and Ireland in general is a laggard in instant payments across Europe. What you could see is some credit unions decide to step out of the credit transfer space.”
Interchange in the U.S.
Ann Petros, head of regulatory advocacy for America’s Credit Unions, updated credit unions from outside the U.S. on the proposed reduction to interchange fees by the Fed would affect income.
U.S. credit unions strongly oppose the Fed proposal, with Petros saying the November elections could affect the proposal.