Reps. Peter King (R-N.Y.) and Brad Sherman (D-Calif.) wrote to NCUA this week to support the ability of credit unions to allow supplemental capital for risk-based capital purposes. The legislators co-sponsored a bill that would make the necessary statutory changes to allow credit unions to accept supplemental capital.
“Providing credit unions access to supplemental capital for risk-based capital purposes will only help enhance the safety and soundness of the credit union system,” King and Sherman wrote. “Not only is increasing the level of capital in the credit union system beneficial for the system as a whole, but supplemental capital can help provide additional protection to the National Credit Union Share Insurance Fund from potential losses.”
King and Sherman’s bill, the Capital Access for Small Businesses and Jobs Act (H.R. 1244), was introduced in March, and is supported by CUNA.
CUNA submitted its own comment letter on alternative capital Tuesday, citing benefits also named by King and Sherman for credit unions.