Billy Hobbs article on CU dividends and ILCU response

WizardDr said:
Any sign of Kaplan?

I need an answer on where the WCCU have a 15% ratio that you mentioned previously.
Thanks.
Click to expand...

I had a look at the Woccu site and could only find reference to 10% reserve ratio. This was in the Model Rules for CUs. Interestingly, in the News section this was reported [broken link removed]

Quite interesting.
 
[MOD EDIT: OT sentence removed]

WOCCU's benchmark is of course 10%.

But debate is getting bogged down in capital adequacy/reserves issues.

I have written here in the past that perhaps the 10% could have been flexed to 8% - but that was before the scale of loan losses considerably worsened.

It may be the case that some credit unions will take a hit on reserves this year - so just as well they weren't burnred up to fund dividends.
 
Some OT posts / parts of posts removed.

Please keep this thread on topic:

Discuss other aspects of CU policy, operations and regulation in other threads in the CU forum.

Please do not engage in personalised OT discussion.

aj
moderator
 
@wizard

The 15% is a target "performance" benchmark. The 10% is the "minimum institutional capital" level promoted by WOCCU.

Suggest opening a thread on the capital/reserve ratio issue as it's quite topical.
 
Sticking to the thread - the Hobbs article posits that mergers are inevitable and good if done for the right reason. It makes sense to consolidate down to few larger balance sheets with the same branch footprint if it creates a sustainable credit union system.
 
The issue of rationalisation — or cooperation as it is called within the league, is a matter for individual credit union boards to decide on.
The ILCU will continue to facilitate credit unions that do choose to restructure. It should be remembered that restructuring is not by its nature a bad thing. quote from the article link at the start of this thread.

Why not deal with the thread and provide cogent reasons for your position
 
More OT posts removed.

Please keep this thread on topic:

Discuss other aspects of CU policy, operations and regulation in other threads in the CU forum.

Please do not engage in personalised OT discussion.

aj
moderator
 
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