WASHINGTON (3/10/14)--Only the U.S. Congress can increase the 12.25%-of-assets credit union member business lending (MBL) cap, but there are a number of regulatory actions the National Credit Union Administration can and should take to aid credit unions approaching the cap, the Credit Union National Association said. CUNA detailed these Friday in letter to the agency leadership.
CUNA President/CEO Bill Cheney wrote, "On a number of occasions, CUNA has urged the agency to revisit its member business loan rule and since March 2012, we have repeatedly advocated that the agency update its regulatory provisions implementing the exemption for credit unions that have a history of primarily making member business loans.
"Since 2008, we have been advocating for other changes to the MBL rule, such as removing limitations that are not required by the statute."
Other steps suggested in letters sent to NCUA Chairman Debbie Matz and board members Michael Fryzel and Richard Metsger include:
The NCUA can take important steps to relieve regulatory burdens associated with MBLs without sacrificing safety and soundness, the top CUNA executive wrote.
CUNA urged the agency to proceed with these recommendations and to aid efforts to encourage the U.S. Congress to increase the cap.