From a retired long-serving CEO observing mergers and governance issues:
We need an S in CAMEL to put the member back in first place among the things the credit union is rated on and that justify the tax exemption.
We need to allow the state in which a credit union operates to regulate how it operates rather than allow an out of state regulator to make the rules.
We need to limit compensation for directors, we need to mandate elections, we need to reduce the number of signatures to run for the board and do all we can to make nomination easier and to ventilate board elections, we need to have minimum quorum of members at an annual meeting, either in person or virtual to be some percentage of members.
The Cooperative Advantage
I am motivated by customer-owned models that will always respond to the lifetime needs of my community whether it be culture or tactics FIT to the evolving now of the ownership’s bond.
How are coop financial models more resilient than for-profit private ownership?
For-profit firms always have one foot in the grave via maximizing their liquidation values via the speculation of being compensated for a change of ownership.
At its core, cooperatives assume a life cycle vision of an infinite marriage with the consumer’s need for a voice in the ownership of their communities’ focus and evolution. My voice in my community. (from a cooperative entrepreneur)
If a credit union improves its capital ratio while its members’ average credit score drops, did it have a good year?
We don’t have a standard way to answer that and I think that’s a problem.
Financial health metrics for institutions are mature, required, and reported quarterly. Member financial health metrics are voluntary, inconsistent, and often absent.
To my credit union colleagues: