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CUNA pushes NCUA, others for regulatory relief
CUNA letter outlines continued need for NCUA regulatory relief, need for NCUA to work with other regulators to reduce burden
In advance of the National Credit Union Administration’s (NCUA) board meeting, the Credit Union National Association (CUNA) wrote to the NCUA board regarding regulatory relief and items on the board’s agenda. CUNA emphasized the continuing need for regulatory relief measures for credit unions and to request that the agency work with other regulators to reduce regulatory burden. Additionally, CUNA is encouraged that at Thursday’s meeting the NCUA Board will consider eliminating the 5% fixed asset cap and also urges the agency budget decrease this summer when NCUA makes it mid-year adjustments to its annual budget.
The Honorable Debbie Matz
Chairman
National Credit Union Administration Board
1775 Duke Street
Alexandria, VA 22314
Dear Chairman Matz:
I am writing today regarding two important items on the National Credit Union Administration (NCUA) Board agenda for Thursday’s meeting, as well as to emphasize the continuing need for regulatory relief measures for credit unions, and to request that the Agency work with other regulators to reduce regulatory burden. CUNA is the largest credit union advocacy organization in the United States, representing America’s state and federally chartered credit unions and their over 99 million member-owners.
Credit unions are drowning in a sea of increased regulation, much of it from agencies other than NCUA, and CUNA welcomes any reduction in regulatory burden. Much reduction is called for. Therefore, CUNA is encouraged that the NCUA Board will consider eliminating the 5% fixed asset cap at Thursday’s meeting. Eliminating the fixed asset cap will add flexibility to the operation of credit unions and is a change for which CUNA has consistently advocated. 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. NCUA should not micromanage individual business decisions, and this represents a useful step in simplifying and modernizing procedures for credit unions.
In addition, CUNA urges agency budget decreases this summer when NCUA makes it mid-year adjustments to its annual budget. In previous years, you have found ways to reduce the budget during the mid-year review, and 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.
In addition, your announcement that NCUA plans to focus on regulatory relief in the coming months is welcome news, and CUNA wants to work with the agency to achieve meaningful reductions in the requirements credit unions must meet. As you know, credit unions are drowning in a sea of regulation that has developed following the financial crisis. CUNA believes it is vital to reduce compliance obligations and give credit unions relief from onerous or outdated requirements. In particular, your 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.
Further, we encourage you to impress on your colleagues at other federal regulatory authorities the need to provide as much relief as possible from onerous and unnecessary regulation. Much of the new regulation that credit unions face is intended to deal with abusive practices at other type of financial institutions that credit unions just do not engage in. Given your extensive knowledge of credit unions, you are in a unique position to inform and influence other policy makers in a way that reduces regulatory burden and allows credit unions to better serve their members.
We welcome your regulatory relief initiatives and urge budget restraint. We look forward to working with the agency on all of the details.
Sincerely,
Bill Hampel
Interim President/CEO
CC:
The Honorable Rick Metsger, NCUA Board Member
The Honorable Michael Fryzel, NCUA Board Member
Mark McWaters, NCUA Board Member-Designate