NAFCU President and CEO Dan Berger wrote the leaders of the House Financial Services Committee to urge their support of legislation allowing credit unions access to supplemental capital in light of NCUA’s proposed risk-based capital rule.
Berger wrote committee Chairman Jeb Hensarling, R-Texas, and Ranking Member Maxine Waters, D-Calif., in advance of the committee’s scheduled markup of several bills, including H.R. 3584, “The Capital Access for Small Community Financial Institutions Act,” on Thursday. He emphasized NAFCU’s support for H.R. 719 – the “Capital Access for Small Businesses and Jobs Act” – a bill reintroduced by Reps. Peter King, R-N.Y., and Brad Sherman, D-Calif., that would allow federal credit unions to receive payments on eligible uninsured, non-share capital accounts.
“Under the framework of NCUA’s proposed rule for risk-based capital, some credit unions could be required to shoulder a disproportionate amount of burden related to the safety and soundness of the greater credit union system,” Berger wrote. “We strongly urge the committee to work with the NCUA to construct a fair and sustainable legislative solution. Currently, some credit unions can seek relief through obtaining supplemental capital. One step to improve this situation would be allowing all credit unions to have access to supplemental capital.”
H.R 3584 would provide credit unions that are only privately insured access to membership in the Federal Home Loan Banks. Currently, only federally insured credit unions may join.continue reading »