Regulatory relief for credit unions cannot wait, CUNA President/CEO Jim Nussle wrote an op-ed to Congress in American Banker Friday. The Senate passed the bipartisan Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) in March, and CUNA, leagues and credit unions around the country are urging the House to take up and pass the bill.
“This bill won’t satisfy everyone--and it shouldn’t. It is targeted reform to Dodd-Frank’s ill-fated provisions that lumped small lenders in with Wall Street megabanks. And, importantly, it passed the Senate with strong bipartisan support, which we all know can be a rare feat in today’s political climate,” Nussle wrote. “Any changes are likely to derail the bipartisan agreement and bring Congress back to square one. That’s concerning given that it’s taken nearly a decade for Congress to act on Dodd-Frank, first with the House’s Financial Choice Act in 2017 and with the Senate’s bipartisan package this year.”
Nussle cited CUNA’s updated regulatory burden study, which showed that as of 2017, the cost of complying with regulations cost credit unions $6.1 billion, or $115 per credit union household.
“Since the financial crisis, credit unions large and small, along with their community banking counterparts, have been saddled with overzealous regulations, despite the little risk we present to the financial system,” Nussle wrote. “In fact, small credit unions, those with less than $115 million in assets, bear the biggest brunt of regulatory burden when you compare the ratio of regulatory costs to assets.”
Nussle added that the bill is “the best chance we have for seeing balancing regulatory relief for small institutions” while ensuring the riskiest banks are still subject to oversight.
“Most importantly, this bill is for the customers of small financial institutions around the country, who rely on our institutions for their banking needs,” he wrote.
Credit union stakeholders can use CUNA’s Campaign for Common-Sense Regulation website to contact their members, and credit unions can go out to their members to support the bill using CUNA’s Member Activation Program.