Share Insurance & Regulatory Choice
“The fact that there is an insurance option-private insurance for state-chartered credit unions-assures that the NCUSIF will be different from the premium based FDIC fund, that it will be funded with deposits from credit unions, and can be counted as an asset on the books of credit unions. The fact that there is an insurance option guarantees there will be a charter option, and thus a regulatory option.
This is to the good for everyone. A single regulator is sooner or later bound to become a lazy or an arrogant regulator. The best ideas will not bubble up; the regulated will not flourish to their maximum potential. But with two regulatory options, competition is going to allow the best ideas to come to the fore and allow the dynamic credit unions to expand.” (pgs 46-47)
Note: From the Coach’s Playbook, a collection of Ed Callahan’s observations. These are a summary of operating values for the credit union system. Ed began his professional career as a high school math teacher and football coach. His thirty years in credit unions included Chairman of NCUA (1981-1985), co-founder of Callahan & Associates, and CEO of Patelco from 1987 through 2002.