NCUA Chairman Rodney Hood lauded the credit union industry while discussing regulatory challenges and fintech pressures during a “Fireside Chat,” hosted by the Cato Institute Wednesday. The chat – part of the 5th annual “Financial Inclusion: The Cato Summit on Financial Regulation” – featured other financial regulators, including FDIC Chairman Jelena McWilliams and representatives from the CFPB and Office of the Comptroller of the Currency.
Also Wednesday, reports indicated that Hood responded to recent banker attacks challenging the NCUA’s oversight authority in light of the New York taxi medallion crisis. Hood said that ridesharing services are “a technological disruption whose impact was as severe as it was uncontrolled,” and indicated that the NCUA will tighten supervision of credit unions who hold high concentrations of one particular type of loan. NAFCU defended the credit union industry to lawmakers following the banker attacks.
At the Cato event – attended by NAFCU’s Sarah Jacobs, regulatory and legislative assistant – Hood noted that regulation needs to be “effective but not excessive,” when asked about the agency’s regulatory approach. He acknowledged that burdensome regulations can prevent credit unions from achieving their mission. He also discussed his individual regulatory agenda, which includes the need for infrastructure to protect credit union data while also encouraging credit unions to look at fintech and innovation as a framework.
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