CUNA seeks subcommittee's scrutiny of key CU issues in hearing
WASHINGTON (7/23/15)--In advance of National Credit Union Administration Chair Debbie Matz’s appearance before a House Financial Services subcommittee this afternoon, CUNA has outlined a number of ways the U.S. Congress and the NCUA can reduce regulatory burden for credit unions.
In a letter sent to the House Financial Services subcommittee on financial institutions and consumer credit, CUNA addressed regulatory burden concerns that can be fixed by statutory changes.
Regarding NCUA’s revised risk-based capital (RBC2) proposal, CUNA raises questions about the NCUA’s authority to issue such a rule, as well as the capital adequacy requirement.
“NCUA should withdraw this proposal,” the letter reads. “In lieu of that, NCUA should improve RBC2 by fixing risk weightings, applying the rule only to adequately capitalized credit unions, as required by the Federal Credit Union Act, removing subjective capital adequacy requirements and allowing supplemental capital to be used for RBC purposes.”
Specific legislation highlighted by CUNA includes:
A bill (H.R. 2287) that would require the NCUA to conduct annual public budget hearings;
The Financial Institutions Examination Fairness and Reform Act (H.R. 1941), which would codify examination standards, provide an ombudsman for credit unions concerns and create an independent appeals process; and
- The Credit Union Small Business Jobs Creation Act (H.R. 1188), which would raise the cap on credit unions’ member business lending.
CUNA also urged the subcommittee to push the NCUA to extend share insurance coverage to stored-value card products; deny the agency additional supervisory authority over third-party vendors and credit union service organizations; and question the need for the agency to stress test the largest credit unions.
The hearing is scheduled to begin at 2 p.m. (ET) and will be streamed live on the committee’s website.