Press
Credit unions unite to respond to Risk Based Capital Proposal
BISMARCK, ND (May 27, 2014) — Credit unions in the Dakotas are very concerned about the negative impact the proposed Risk Based Capital (RBC) rule would have on credit unions, as are credit unions all across America’s “bread basket”. In response to NCUA’s proposal and to protect the interests of rural America and America’s farmers, 22 credit unions from seven Midwest states have joined together to respond in a jointly signed comment letter to NCUA. The 22 credit unions represent the states of North and South Dakota, Indiana, Kansas, Minnesota, Nebraska and Wisconsin.
These agricultural based credit unions are committed to ensuring that rural America and America’s farmers have continued access to credit through their local credit unions. “We have a long, established and proven history of providing safe and sound agricultural lending to our members” begins the letter. It continues, “Credit unions that serve rural America by making safe, low priced loans to farmers will be severely impacted by the risk-based capital rule if it is adopted as proposed. This negative impact is largely due to the tiered approach placed on member business loans”.
CUAD’s President/CEO Robbie Thompson says “I believe this letter is a great example of cooperation and the power of credit unions working together. In addition, I think this will be very impactful on NCUA.”
This letter falls on the heels of other CUAD efforts to ensure that NCUA considers the potential negative impact the proposed rule changes could have on rural credit unions and credit unions serving low income communities. In addition to submitting its own comment letter to NCUA last week, CUAD has been actively advocating for credit unions in the Dakotas to submit comment letters. CUAD has reached out to Ag and rural associations in the Dakotas, expressing concerns. As a result, those groups came together and submitted their own comment letter, encouraging NCUA to consider rural communities and how this rule could impact lending in those communities. CUAD also submitted a video comment letter last Friday to NCUA that featured Dakota credit union CEOs speaking directly about the impact the proposed rule would have in their communities.
Headquartered in Bismarck, ND, the Credit Union Association of the Dakotas (CUAD) is the professional financial trade association serving 75 credit unions in North and South Dakota with assets in excess of $5.5 billion and serving over 461,300 credit union members. For more information about CUAD visit our website at www.cuad.coop.