CUNA
  • Advocacy
    • Priorities we’re fighting for
    • Actions you can take
  • News
  • Learn
  • Compliance
  • Shop
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • COVID-19
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact
Learn More about Member Value

News

Member Benefits
Learn more
Learn more about the benefits of membership.
Home » CUs address need for access to capital in letter to Sen. Banking Comte
Press

CUs address need for access to capital in letter to Sen. Banking Comte

June 26, 2018

FOR IMMEDIATE RELEASE       

CONTACT: Lauren Williams – CUNA Communications; (202) 626-7642; lwilliams@cuna.coop    

Washington, DC (June 26, 2018) – Today Credit Union National Association (CUNA) sent this letter to Senate Banking Committee leadership prior to this morning’s hearing on ways to enhance consumers’ access to capital entitled, “Legislative Proposals on Access to Capital." The letter was written to Chairman Crapo and Ranking Member Brown to urge for consideration of two proposals that are significantly relevant to credit unions.  

One growing concern CUNA addressed is the National Credit Union Administration’s (NCUA) risk-based capital standards for credit unions. The letter calls into question the appropriateness of the regulatory burden and whether the NCUA has legal authority to impose a risk-based standard.   

“NCUA lacks the legal authority to set a risk-based capital standard to determine whether a credit union is well capitalized, and coming out of the financial crisis, Congress did not convey this authority,” the letter reads. “During consideration of the Dodd-Frank legislation, Congress explicitly excluded credit unions from risk-based capital requirements, in recognition of the credit union difference and the fact that America’s credit unions—nearly half of which employ fewer than five full-time employees and hold less than $20 million in assets—were neither responsible for nor participatory in the risky financial activities that predicated the 2008 financial crisis.” 

CUNA also recommends eliminating statutory restrictions on the maturity of loans made by federal credit unions to provide more access to capital. 

“While federal credit unions are permitted to make mortgage loans with maturities of more than 15 years, most other federal credit union loans must have maturities of 15 years or less. This puts federal credit unions at an unnecessary disadvantage relative to many state-chartered credit unions and other depository institutions. It also makes credit less available for federal credit union members because it complicates both credit unions’ ability loan to some education borrowers and to sell certain loans into the secondary market.” 

###     

About CUNA       

Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 110 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org.    

Credit Union Magazine - Winter 2020

Winter 2020

Credit Union Magazine’s Winter 2020 edition features CUNA’s 2021 lending outlook, CEO insights on adjusting to the pandemic, and board recruitment strategies.
Digital Edition •  Subscribe

Trending

  • NCUA proposes raising threshold for ‘complex’ CUs

  • Compliance: 2020 Year in Review, Checklist now available

  • NCUA’s 2021 supervisory priorities reflect COVID effects

Tweets by CUNA_News

Polls

Will you ask employees to receive the coronavirus vaccine?

View Results
More

Champion of America’s Credit Unions

Credit Union National Association is the only national association that advocates on behalf of all of America’s credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • About
  • Careers
  • Contact Us
  • Recommended Websites
  • Privacy Policy

Resources for

  • CUNA Board Members
  • Credit Union Advocates
  • Leagues
  • Press
  • Vendors