A bill introduced Wednesday by Sens. Sherrod Brown, D-Ohio, and David Vitter, R-La., to end federal bailout aid for large banks while proposing a new capital system for banks should be expanded to address risk-based capital for credit unions, NAFCU Vice President of Legislative Affairs Brad Thaler said Wednesday.
Thaler wrote the two senators late Tuesday urging them to consider addressing the outdated, fixed-ratio capital system in place now for credit unions as they prepared to release their bill. “Establishing a 21st century capital system for credit unions that takes in to account the risk profile of each asset portfolio – a key element in NAFCU’s five-point plan for credit union regulatory relief – is key to ensuring credit unions remain nimble and responsive to market changes,” Thaler said Wednesday.
The Brown-Vitter bill was offered as community bankers were convening a meeting in Washington, which continues today.