CUNA President/CEO Jim Nussle highlighted how the current regulatory environment favors the largest banks in a letter to House Small Business Committee leadership Wednesday. The letter was sent for the record of the committee’s hearing on regulatory reform and its effect on small businesses.
“These large entities can afford to absorb the significant regulatory and compliance costs from the thousands of pages of new rules and regulations. It has made it significantly more difficult for credit unions to provide the affordable financial services that our members depend on and deserve," Nussle wrote.
Nussle cited CUNA’s updated regulatory burden study that shows regulatory burden for credit unions has increased to an “elevated new normal,” totaling an estimated $6.1 billion in 2016. Costs are up more than $800 million compared with 2014.
“That is a 15.1% increase, which far exceeds the 2.8% inflation rate over the two-year period,” Nussle wrote. “In total, the credit union regulatory burden costs for 2016 translate to $115 per credit union household.”
Nussle also highlighted provisions in the Senate’s bipartisan regulatory relief bill, which it is currently considering, that would offer the type of targeted relief credit unions and members need, including: