Democratic control of the White House, Senate, and House of Representatives has created a new climate for regulation, says Jared Ihrig, CUNA’s chief compliance officer.
The resulting rollback in regulatory relief reforms may increase credit unions’ regulatory burden and heighten regulators’ focus on equitable and inclusive financial services, says Ihrig, who addressed the 2021 CUNA Operations & Member Experience and CUNA Technology Council Virtual Conference.
“The pendulum has shifted significantly,” he says.
President Biden’s top priorities are recovery from the pandemic and restart of the economy, and early initiatives will be tied to these efforts, Ihrig says. While credit unions need to watch for provisions that add regulatory burden, they may find opportunities to expand powers or acquire additional tools to serve and assist members.
He says regulators are closely scrutinizing environmental, social, and governance criteria in how financial institutions conduct business and manage relationships with employees, customers, suppliers, and the communities they serve.
NCUA’s supervisory priorities for 2021, Ihrig says, include: