Senate Banking Chairman Crapo calls for regulatory flexibility
Senate Banking Committee Chairman Mike Crapo (R-Idaho) wrote to the heads of federal financial regulators, including NCUA Chairman Rodney Hood, recently on the Paycheck Protection Program’s (PPP) effect on certain asset-based regulatory thresholds. Crapo notes that the pandemic has resulted in a significant inflow of deposits, as well as institutions providing their own funds for PPP loans.
“Many banks and credit unions may now unexpectedly face surpassing certain asset-based regulatory thresholds. Crossing these thresholds would entail new, expensive and burdensome regulatory requirements to which they would not have otherwise been subject,” Crapo wrote. “Banks and credit unions must not be deterred from continuing to play a key role in the recovery and must maintain ample flexibility to serve customers and work with those affected by the pandemic.
“As each of your agencies continue taking actions to provide liquidity to the marketplace and support lending to households and businesses, I urge you to use your discretion to minimize the regulatory impact on banks and credit unions resulting from their participation in the PPP,” he added.
CUNA continues to call on Prompt Corrective Action flexibility to be part of the next phase of COVID-19 relief legislation.