Take Responsibility for Your Financial Literacy
(This post is also available in the March 2017 edition of the CUNA Directors’ Newsletter.)
Regulators hold volunteers accountable for understanding key measures and ratios that indicate a CU’s health.
It’s time for the annual exit interview with credit union regulators. You’ve been told they finished your regulatory exam and have requested the entire board’s presence. If this development hasn’t already alerted you to an issue, the six regulators awaiting you in the board room does.
You look around the board room and see anxiety in the CEO’s face, urgency in the regulators’ faces, and a bit of confusion and concern in your fellow directors’ faces.
Houston, we have a problem: Your credit union is losing money. Your net worth ratio is taking a plunge, and you’re losing assets. “And,” they say, “it’s your fault.”