Commerce - Credit Union
James Forney,
Superintendent
Mission Statement:
To safeguard the interests of credit union depositors and stakeholders through the effective administration and execution of the laws relating to credit unions.
State chartered credit unions remain sound
Resolving complaints
Charter credit unions examined timely
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Performance Plan - How we measure our progress
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Strategic Plan - How we plan for progress
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Performance Report - How we report our progress
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Department Home Page - Learn more about this department
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Why
this is important:
Composite ratings are based on a careful evaluation
of an institution's managerial, operational,
financial, and compliance performance. The six
key components used to assess an institution's
financial condition and operations are: capital
adequacy, asset quality, management capability,
earnings quantity and quality, the adequacy of
liquidity, and sensitivity to market risk. The
rating scale ranges from 1 to 5, with a rating
of 1 indicating: the strongest performance and
risk management practices relative to the institution's
size, complexity, and risk profile; and the level
of least supervisory concern. A 5 rating indicates:
the most critically deficient level of performance;
inadequate risk management practices relative
to the institution's size, complexity, and risk
profile; and the greatest supervisory concern.
The composite ratings are defined as follows:
Composite 1 Rating - indicates strong performance and
risk management practices, and any weaknesses
are minor and can be handled in a routine manner. These
credit unions give no cause for supervisory
concern.
Composite 2 Rating - reflects satisfactory performance and
risk management practices, areas of weakness
may be present but are considered minor and
if left unchecked could develop into greater
concern. These credit unions have minor supervisory
contact.
Composite 3 Rating - represents performance that
is flawed to some degree and risk management
practices may be less than satisfactory, credit
unions require more than usual supervisory attention
to address deficiencies.
Composite 4 Rating - refers to poor performance of
serious supervisory concern that, if left unchecked, would be expected
to lead to conditions
that could threaten the viability of the credit
union, and weaknesses and problems are not being
satisfactorily resolved.
Composite 5 Rating - considered unsatisfactory
performance that is critically deficient and
in need of immediate remedial attention, weaknesses
and severity of problems are beyond management's
ability or willingness to control or correct,
and these conditions directly
threaten the viability of the credit union. These
credit unions have a high probability of failure,
are under continuous supervisory scrutiny and
involvement, and will likely require emergency
assistance, liquidation, merger or acquisition.
What we're doing about this:
Our vision is to provide for a regulatory
environment in which Iowa's credit unions
can prosper, operate in a safe and sound manner, and meet the
financial
service needs of their members. By providing
a safe and sound regulatory environment,
we safeguard the interests of credit union depositors and
shareholders. Presently there are 154 credit
unions in the state. While the number of
credit unions is declining, the industry is not losing
members or assets and through mergers, the
members are gaining additional services.
Credit unions at risk are closely monitored by problem case
examiners and Letters of Understanding are
put in place between the credit union
and the Division to resolve problems identified before further
administrative action is required.
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Why
this is important:
By providing a timely examination program, we
safeguard the interests of credit union depositors
and shareholders. Presently there are 154 credit
unions in the state. While the number of credit
unions is declining, the industry is not losing
members/assets and that through mergers, the
members are gaining additional services.
What we're doing about this:
Credit unions
at risk are closely monitored by Problem Credit
Union Examiners and Letters of Understanding
are put in place between the credit union and
the Division to correct problems identified before
a merger becomes necessary rather than for the
reason of additional services to members.
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