PEWAUKEE, Wis. (5/14/14)--Wisconsin Credit Union League President/CEO Brett Thompson stressed the negative effect the National Credit Union Administration's risk-based capital proposal would have on state credit unions during his membership address at the league's 80th annual convention last week.
|During the Wisconsin Credit Union League's annual meeting, Legal Counsel Paul Guttormsson gave some pointers on writing an effective comment letter to Jennifer Schilling, president/CEO of Empower CU, West Allis, and league board chair. (Wisconsin Credit Union League photo)|
The Wisconsin league also assisted members in writing comment letters on the risk-based capital proposal to the NCUA.
Wisconsin credit unions will experience $200 million in lost capital. A full 82%, or 60 of 73 Wisconsin credit unions over $40 million in assets, would have their capital cushion shrink below "well capitalized" levels under the proposal.
The impact of the proposal would be far-reaching and long-lasting, Thompson said. Even though the new capital standard applies only to credit unions with more than $50 million in assets, every credit union should be concerned because the new standards would affect more credit unions as they grow, seriously curtailing their future plans for member service, Thompson said.
In related news on the risk-based capital proposal, Credit Union National Association President/CEO Bill Cheney said Tuesday that the hundreds of House members' signatures collected on a letter of concern over the National Credit Union Administration's proposed risk-based capital regulation--and the short timeframe in which they were collected--could never have been accomplished without the outstanding efforts of credit unions and their state leagues.
Also at the meeting, the league announced the results of its board elections: