By Fred Becker
A couple of weeks ago, the National Association of Federal Credit Unions sent Congress a five-point plan for broad-based regulatory relief that will significantly enhance credit unions ability to create jobs, help the middle class, and boost our nation’s struggling economy. The five-point plan is built on a solid framework of recommendations that provide regulatory relief through administrative, capital, structural, operational and data security reforms.
The plan is a carefully considered response to the barrage of overwhelming regulations being placed on the credit union industry, which is widely acknowledged to have not been responsible for the financial crisis yet is being forced to bear the weight of restrictive regulations for those who did. Simply stated, today’s ever-increasing regulatory burden is creating a restricted financial marketplace with higher costs and fewer options for consumers — exactly the reverse of what our economy needs.
Already, we have seen three new bills introduced in this Congress that address key proposals in our plan.
H.R. 688, The Credit Union Small Business Jobs Creation Act, introduced by Reps. Ed Royce, (R-Calif.), and Carolyn McCarthy (D-N.Y.), seeks anew to increase the credit union member business lending cap to a maximum of 27.5 percent of assets for eligible institutions. H.R. 719, The Capital Access for Small Businesses and Jobs Act, was introduced by Reps. Peter King (R-N.Y.), and Brad Sherman (D-Calif.), addressing credit unions’ need for access to supplemental capital. H.R. 749, The Eliminate Privacy Notice Confusion Act, introduced by Sherman and Rep. Blaine Luetkemeyer (R-Mo.), would remove the requirement for financial institutions to mail privacy notices yearly to members even when they don’t change their policies.continue reading »