HIGHTSTOWN, N.J. – NCUA’s newly appointed Chief Economist John Worth gave New Jersey credit union leaders his forecast for the economy, regulations, and the industry as a whole at NJCUL’s Executive Leadership Series (ELS) session on Tuesday.
Gentile opens the discussion by presenting the first question to Worth.
NJCUL President/CEO Paul Gentile welcomed the group and introduced Worth, who is relatively unknown to many, but is originally from Paterson, N.J. Gentile informed attendees that the session should be interactive, and he kicked it off with a question of his own, asking Worth to explain the reasoning behind NCUA’s new ruling on credit ratings. Worth provided an overview of the ruling and stated that the intent is more for agencies such as NCUA than for credit unions; however, it will require credit unions to have policies in place for purchasing investments.
Worth was very knowledgeable and engaging. His economic, regulatory, and industry outlook presentation drilled down to credit union performance here in New Jersey compared to industry and national trends. Worth gave an up close and personal look at how N.J. credit unions are faring in areas such as loan growth, return on average assets, and delinquency in the face of a difficult economy and continued unemployment.
Worth gives an economic outlook for 2013.
He shared some hopeful trends, such as the fact that inflation appears contained and consumer confidence was up early in October and continues a positive trend, house price indicators are turning up, and the delinquency picture is improving. Worth also gave attendees a view of key economic impacts to credit unions in today's environment as well as the economic risks to be prepared for.
Last but not least, Worth provided a regulatory outlook that included lessons of the financial crisis, such as the concept that incentives matter, consumer behavior is evolving rapidly, key institutions need rigorous oversight, risk management must keep up with innovations, and much more.
His final tip to credit union leaders was to check out the U.S. Treasury's 2012 Financial Stability Oversight Council (FSOC) Annual Report – Recommendations. Click here to access the report.
John Worth’s presentation from the session can be found on the League Web site at www.njcul.org/els-presentations.aspx.