Matz Says She’s On Board with King’s Supplemental Capital Bill

by. Heather Anderson

NCUA Chairman Debbie Matz expressed her support for H.R. 719, the Capital Access for Small Business and Jobs Act, in a May 2 letter to the bill’s sponsor, Rep. Peter King (R-N.Y.).

The bill would allow credit unions to utilize uninsured, non-share accounts to supplement capital.

“Your legislation would provide credit unions with an additional tool to promote sufficient capital stability – even under adverse economic conditions – and ensure that healthy credit unions would no longer be forced to turn away deposits in order to protect their net worth ratio,” Matz wrote in the letter.

The bill would also reduce “downstream risks” to the National Credit Union Share Insurance Fund to absorb losses, the NCUA Board chair said, adding that protection of the NCUSIF is “the top priority” of the board.

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