FOR IMMEDIATE RELEASE
CONTACT: Lauren Williams – CUNA Communications; (202) 626-7642; firstname.lastname@example.org
Washington, D.C. (September 5, 2018) – Credit Union National Association (CUNA) is seeking a resolution to solve the disparity in the examination cycle that currently gives community banks an unfair advantage. CUNA President/CEO Jim Nussle wrote to NCUA Chairman J. Mark McWatters on Monday in an effort to level the playing field.
Section 210 of the recently enacted Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) includes a provision that would increase the asset limit below which depository banks are eligible for an 18-month exam cycle to $3 million, while credit unions must fall under $1 billion in assets to be eligible.
“This regulatory disparity now serves as a comparative advantage for community banks. Congress has already delegated authority to NCUA to set the frequency of examinations for credit unions,” Nussle wrote. “Given that Congress has now codified an extended exam cycle for community banking institutions—the type of insured bank depository institution most closely aligned with the credit union industry—NCUA would be well within its legal purview to exercise similar discretion for small credit unions.”
Federal banking agencies have issued an interim final rule to implement the provision raising the threshold to $3 billion.
“Already, credit unions are concerned that NCUA has not taken steps to address the increased commercial appraisal thresholds the banking agencies adopted back in April,” the letter continues. “These competitive advantages given to banks translate into tangible costs for credit unions…Credit unions deserve the privilege of providing customer service subject to comparable regulatory supervisory thresholds as applied to banking organizations.”
While CUNA supports NCUA’s efforts and advancement toward exam modernization, credit unions deserve the opportunity to provide customer service subject to equal supervisory thresholds as applied to banks.
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.