CUNA to NCUA: Reg reduction for credit unions is urgent

Significant reduction in credit unions’ regulatory requirements is urgently needed, Credit Union National Association interim President/CEO Bill Hampel said in a letter to National Credit Union Administration Chair Debbie Matz yesterday in advance of the agency’s board meeting Thursday.

The NCUA should work with other agencies on regulatory relief measures for credit unions, CUNA urged. The letter expresses support for the NCUA’s fixed-asset proposal, which is on the agency’s meeting agenda, and for regulatory relief in general.

The NCUA has proposed to eliminate the 5% fixed asset cap — which CUNA has strongly supported — and will discuss the proposal at the monthly meeting. CUNA said it is “encouraged” by the agency’s review.

“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,” the letter reads. “NCUA should not micromanage individual business decisions, and this represents a useful step in simplifying and modernizing procedures for credit unions.”

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