Nussle to testify on CHOICE Act regulatory relief possibilities
CUNA President/CEO Jim Nussle’s Tuesday appearance before the House Financial Services Committee highlights a busy week in Congress. The hearing will address Title I of committee Chair Rep. Jeb Hensarling’s (R-Texas) Financial CHOICE Act, his alternative to the Dodd-Frank Act.
“We expect to discuss how and why credit unions weathered the financial crisis, the impact of regulatory burden on credit unions and the effect that Title I would have on credit unions,” said Ryan Donovan, CUNA’s chief advocacy officer. “The Financial CHOICE Act isn’t a perfect bill, but it’s a good place to start in terms of relieving credit unions from unnecessary regulatory burdens so they can more fully serve their members.”
Title I of the bill would exempt credit unions and banks operating with a leverage ratio of greater than 10% from certain capital and liquidity requirements.
For credit unions, it would essentially exempt them from the NCUA’s risk-based capital, interest rate risk, and liquidity rules. Nearly 4,000 of the roughly 6,000 credit unions in the United States operate with more than 10% net worth, according to CUNA’s research.continue reading »