WASHINGTON (7/22/15 UPDATED 5:30 p.m. ET)--CUNA has highlighted multiple ways Congress can help advance regulatory relief in a letter sent today in advance of National Credit Union Administration Chair Debbie Matz’s appearance before a House Financial Services subcommittee Thursday.
In its letter, sent to the House Financial Services subcommittee on financial institutions and consumer credit, CUNA noted a number of pieces of regulatory relief legislation, as well as other actions that could be taken.
Notably, CUNA raises questions about the NCUA’s authority to issue its revised risk-based capital proposal, and points out specific concerns with the proposal's capital adequacy requirement.
“NCUA should withdraw this proposal,” the letter reads. “In lieu of that, NCUA should improve RBC2 by fixing risk weightings, applying the rule only to adequately capitalized credit unions, as required by the Federal Credit Union Act, removing subjective capital adequacy requirements and allowing supplemental capital to be used for RBC purposes.”
Specific legislation highlighted by CUNA includes:
CUNA also urged the subcommittee to push the NCUA to extend share insurance coverage to stored-value card products; deny the agency additional supervisory authority over third-party vendors and credit union service organizations; and question the need for the agency to stress test the largest credit unions.
The hearing is scheduled to begin at 2 p.m. (ET) Thursday and will be streamed live on the committee’s website.