CUNA President/CEO Jim Nussle’s Tuesday appearance before the House Financial Services Committee highlights a busy week in Congress. The hearing will address Title I of committee Chair Rep. Jeb Hensarling’s (R-Texas) Financial CHOICE Act, his alternative to the Dodd-Frank Act.
“We expect to discuss how and why credit unions weathered the financial crisis, the impact of regulatory burden on credit unions and the effect that Title I would have on credit unions,” said Ryan Donovan, CUNA’s chief advocacy officer. “The Financial CHOICE Act isn’t a perfect bill, but it’s a good place to start in terms of relieving credit unions from unnecessary regulatory burdens so they can more fully serve their members.”
Title I of the bill would exempt credit unions and banks operating with a leverage ratio of greater than 10% from certain capital and liquidity requirements.
For credit unions, it would essentially exempt them from the NCUA’s risk-based capital, interest rate risk, and liquidity rules. Nearly 4,000 of the roughly 6,000 credit unions in the United States operate with more than 10% net worth, according to CUNA’s research.
“We’ll be describing Title I as appropriate for credit unions given their history of being well-capitalized and operating in a safe and sound manner,” Donovan said.
CUNA expects to send its written testimony to the committee Monday evening, and it will be available here.
The hearing is scheduled to begin at 10 a.m. (ET), and video will be streamed live on the committee’s website.
Other hearings of note CUNA will be monitoring this week include:
After this week, Congress will be out of session for the presidential nominating conventions and for the August recess, with a return likely Sept. 6.