WASHINGTON (8/5/14)--Three legislators have joined more than 30 of their colleagues by writing the National Credit Union Administration to express concerns with the agency's risk-based capital proposal. Sens. John Thune (R-S.D.) and John Hoeven (R-N.D.), along with Rep. Jim Bridenstine (R-Okla.) sent their letters late last week.
Hoeven and Thune, who serves on the Senate Finance subcommittee on international trade, customs and global competitiveness, wrote on behalf of the 81 federal and state chartered credit unions in their state, which serve more than 450,000 members with assets of more than $5.5 billion total.
"We share the concerns of many of our colleagues … that your proposed regulations regarding risk-based capital could have unintended consequences that could negatively impact the availability and affordability of financial products offered to consumers," the letter reads, adding that many of the credit unions in the Dakotas serve agriculture-based communities.
Bridenstine's letter urges consideration of the effects the proposal would have on credit unions with high levels of concentration in assets such as member business loans, mortgages and long term investments.
"NCUA examiners already have the ability to mitigate concentration risk through other regulatory actions, it appears that the inclusion of concentration risk as a part of the calculation of capital rules could be redundant and place credit unions at a competitive disadvantage relative to other insured depository institutions," the letter reads.
Both letters also ask the NCUA to reconsider the proposed 18-month implementation period, which NCUA Chair Debbie Matz said will be changed.
In addition to legislators writing individually, 324 representatives signed a letter in May outlining issues with the proposal.