WASHINGTON (7/30/14)--Significant reduction in credit unions' regulatory requirements is urgently needed, Credit Union National Association interim President/CEO Bill Hampel said in a letter to National Credit Union Administration Chair Debbie Matz yesterday in advance of the agency's board meeting Thursday.
The NCUA should work with other agencies on regulatory relief measures for credit unions, CUNA urged. The letter expresses support for the NCUA's fixed-asset proposal, which is on the agency's meeting agenda, and for regulatory relief in general.
The NCUA has proposed to eliminate the 5% fixed asset cap -- which CUNA has strongly supported -- and will discuss the proposal at the monthly meeting. CUNA said it is "encouraged" by the agency's review.
"This move will allow credit unions to update facilities, upgrade technologies and make purchases that do not impact safety and soundness without having to seek permission or waivers from NCUA," the letter reads. "NCUA should not micromanage individual business decisions, and this represents a useful step in simplifying and modernizing procedures for credit unions."
CUNA is also urging the agency to maintain its practice over the last several years of reducing the mid-year budget. The agenda includes a mid-year analysis of the NCUA's operating budget.
"We strongly support efforts that will minimize agency expenditures that are borne by credit unions. We urge the agency to exercise fiscal restraint, and hope that Thursday's meeting will provide another opportunity for needed relief in this area," the letter reads.
CUNA also emphasized its willingness to work with the agency for much-needed regulatory relief for credit unions, and noting that the NCUA's "commitment to modernize member business lending, advertising, appraisal provisions and other rules is an encouraging development, and we will continue to work with the NCUA Board and staff to produce really meaningful changes."
The NCUA's board meeting will be Thursday at the agency's Alexandria, Va. headquarters, starting at 10 a.m. (ET).
Use the resource link below for more information.