NCUA Chairman Debbie Matz on Friday urged the Financial Accounting Standards Board to take steps to mitigate the impact of its credit-loss proposal on small and medium-sized credit unions before issuing a final standard.
Matz told FASB that, as the primary federal regulator of federal credit unions and insurer of the majority of state-chartered credit unions, she has safety and soundness concerns about the proposed standard.
“I urge the FASB to consider the unintended consequences of enacting financial reporting rules that may unduly impact the financial performance of small- and medium-sized credit unions and discourage these institutions from making loans to low-income borrowers, particularly during times of economic distress,” she wrote.
Matz wants FASB to work with the Private Company Council of the Financial Accounting Foundation to develop “practical expedients” for small private companies in the final standard.
NAFCU, in its comment letter Thursday on the proposed standard, said the proposal shouldn’t be applied to non-profit, member-owned credit unions.continue reading »