CUNA, the Defense Credit Union Council (DCUC) and the National Association of Federally-Insured Credit Unions (NAFCU) sent a letter to Senate Armed Services Committee leadership regarding potential provisions to the National Defense Authorization Act (NDAA) for the Fiscal Year 2023.
The associations wrote in strong opposition to third-party vendor authority amendments, as NCUA has in place ‘very effective’ regulation of Credit Union Service Organizations (CUSOs).
“We are concerned that extending additional supervisory authority over these firms to NCUA would require the agency to increase its budget to hire personnel with appropriate expertise,” the letter reads. “This is a concern to credit unions because credit union member resources fund the agency, and credit unions question why they should be required to send more of their members’ savings to NCUA when the agency has demonstrated it is effectively regulating CUSOs and third-party vendors absent this authority.”
The letter goes on to support the SAFE Banking Act, Central Liquidity Facility Enhancement (CLF) Act, and Fair Hiring in Banking Act.
“We take no position on legalizing or decriminalizing medicinal or recreational cannabis at either the state or federal level. However, financial institutions operating in states where it is legal have businesses and individuals involved in the cannabis market who need access to traditional depository and lending services, the absence of which creates a significant public safety issue,” the letter reads.
The CLF was created to improve the financial stability of credit unions and exists within the NCUA. The CLF Act would make provisions to the Coronavirus Aid, Relief and Economic Security (CARES) Act permanent
“The CARES Act provisions represent a recognition that existing law does not afford credit unions sufficient access to emergency liquidity during times of crisis. It is inefficient and could prove unsafe to allow the CLF to return to its previous level of borrowing authority and credit union access, which will happen if this legislation is not enacted,” the letter adds.
CUNA, DCUC and NAFCU also expressed support for H.R. 5911, the Fair Hiring in Banking Act, which would allow ‘greater employment opportunities’ and reduce recruitment barriers.