National Credit Union Administration Chairman Todd M. Harper delivered remarks at the opening session of today’s meeting of the Financial Stability Oversight Council (FSOC). Secretary of the Treasury Janet L. Yellen presided over the meeting.

During his remarks, Chairman Harper noted the many achievements of the FSOC, including the publication of the Nonbank Designations Guidance and Analytical Framework and the FSOC Annual Report, which highlights system issues specific to credit unions. “For the first time, this annual report also aptly recognizes the need to anticipate and mitigate the likelihood of large credit union failures, especially with system assets heavily concentrated in a few large institutions,” Chairman Harper said.

Chairman Harper also noted that the annual report underscores the need to finalize regulatory action on incentive-based compensation, saying, “Financial executives have a responsibility to steward their institutions with a focus on long-term organizational health and not on short-term personal gain. Effective rules, not unenforceable guidelines, will best allow regulators to protect shareholders, jobholders, householders, and all other stakeholders from the excesses caused by greed. We all need to finish this job to uphold transparency and accountability across the financial system.”

In closing, the Chairman urged the Council to “remain vigilant against the many threats to financial stability and stand ready to act, when needed.”

Chairman Harper’s full remarks are available on the NCUA’s website.