WASHINGTON (9/23/14)--The World Council of Credit Unions has outlined several concerns with draft supervisory guidance from the Basel Committee that could discriminate against cooperative institutions when the committee identifies "weak banks."
In its comment letter, World Council supports most aspects of the proposal but expresses concern that "some elements of the proposal could be used to discriminate against the cooperative depository institution model or impose excessive regulatory burdens on credit unions and other smaller financial institutions" such as risk-based capital.
The proposed guidance aims to provide resources for supervisors by offering "practical guidelines in the areas of problem identification, corrective action, resolution techniques and exit strategies" with respect to identifying, strengthening and, if necessary, resolving weak banks and similar financial institutions.
Comment highlights include:
Use the resource links below to access the Basel Committee's proposed guidance and World Council's letter.