Advertisement
Callahan Associates Risk-Based capital credit union calculator

CreditUnions.com

Remember Me
Register | Forgot Password?
2
Print



Add a Comment

Rate this Article



2000 characters left
  

Comments

RSS

Sam Thacker

7/26/2012 04:08 PM

I have written a number of articles about whether credit unions should be in the business of making business loans.

Recently I interviewed an NCUA workout specialist who told me shocking stories of business loans that credit unions should not be making.

As a commercial lender with 17 years of experience it is my belief that credit unions don't have the commercial lending departments necessary to make commercial loans.

I am very concerned about the method that aggressive credit unions are getting around the capital requirement. We are in a time when nearly all banks have stopped doing participations because of the concern over regulator angst. At the same time a small number of large credit unions are circumventing the cap requirement by participating risky commercial real estate loans with other credit unions who aren't doing their own due diligence.

It is quite possible that this next year we will see more credit unions merge or fold because of risky commercial loans that should not be made in the current lending climate.

It all boils down to commercial lending experience which most credit unions don't yet have.

Sam Thacker

www.bfs-usa.com

Winter Prosapio

7/26/2012 03:59 PM

You might be interested in the Dallas Morning News Op Ed that called for a lifting of the cap - it took umbridge with the ABA arguments.

http://www.littleurl.net/438303

Advertisement
Callahan & Associates PSCU

Podcasts

Benchmarking And Batting Averages
Alix and Steven discuss how benchmarking correlates with batting averages.
Listen To The Episode

Diversions
A monthly podcast that will distract you in the best ways possible.
Listen To The Episode

Graphic Of The Week

Slow Money Principles Are At Play In Credit Unions

Credit unions have steadily changed and grown over the past 20 years.

Current Issues

Strategy & Performance
CUSP 4Q 2013 TOC
eBook
Archives
CU
Directory
Credit Union  Directory eBook
Callahan Report
Callahan Report March 2014 PDF
Archives

Tweets

CUs In The News

 
Advertisement
Callahan Associates Risk-based capital credit union rule
Advertisement
2014 Credit Card Management School
Platinum Suppliers   |   Get Listed
Copyright © 2014 Callahan & Associates, Inc. All rights reserved. Website design and website development by Americaneagle.com