WASHINGTON (2/19/16)--Every member of Congress, in addition to key financial regulators, received letters this week directing them to a new website the Credit Union National Association (CUNA) has created that lists the full details of the cost of regulatory burden study CUNA commissioned last year.
The letter, authored by CUNA President/CEO Jim Nussle, reminds lawmakers and regulators that in 2014, credit unions sustained $7.2 billion in costs due to overregulation. CUNA partnered with Cornerstone Advisors to conduct the study.
“As good public citizens, credit unions accept that reasonable regulations are necessary, but the amount of regulatory barriers they now face, and the increases in regulation over the past several years, are onerous and indeed put at risk the very existence of some credit unions,” Nussle wrote.
Not only is the $7.2 billion price tag an astounding number, but even after controlling for asset growth, costs have ballooned by 40% since 2010, Nussle said.
“We believe that any good public policy should stand up to a cost/benefit analysis,” he added. “Up until now, there has been no quantifiable information about the cost of credit union regulation. Indeed, at a Senate Banking Committee hearing last year, several Senators decried the lack of hard data on the cost of the wide range of financial regulation.”
This also likely won’t be the last time lawmakers see the letter.
CUNA has drafted a one-sheet attendees at next week’s CUNA Governmental Affairs Conference can bring to their representatives during Hike the Hill visits.
Attendees will find the one-sheet in their registration packets.