NAFCU Applauds Rep. Miller’s Introduction of the Regulatory Relief for Credit Unions Act
WASHINGTON, DC (June 28, 2013) The National Association of Federal Credit Unions (NAFCU) today applauded the introduction by House Financial Services Committee Vice Chairman Gary Miller, R-Calif., of the “Regulatory Relief for Credit Unions Act.” The legislation will provide meaningful relief from the mounting regulatory burden on the nation’s credit unions, allowing them to better serve their members.
“NAFCU and its member credit unions thank Rep. Miller and his staff for their leadership on this issue and for working steadfastly to ensure that regulations affecting the nation’s member-owned, not-for-profit credit unions make sense. This much-needed bill will help ease the burden on credit unions allowing them to focus on serving their 95 million members,” said B. Dan Berger, NAFCU’s executive vice president of government affairs. “We look forward to working with Vice Chairman Miller and his Financial Services Committee colleagues to get this important piece of legislation considered before Congress.”
The legislation’s centerpiece is a risk-based capital proposal that revives concepts supported by the credit union industry in previous legislative efforts, such as the “Credit Union Regulatory Improvements Act.” “This bill represents a way forward on risk-based capital that we believe can get Congressional support,” said Berger.
The Miller bill incorporates several measures from NAFCU’s comprehensive five-point plan for regulatory relief. Specifically, the Miller bill would:
- allow the NCUA to grant federal credit unions a waiver to follow a state rule instead of a federal one in certain situations;
- authorize NCUA to step in where appropriate to modify a CFPB rule affecting credit unions;
- establish a risk-based capital system for credit unions;
- require that NCUA and the CFPB revisit cost/benefit analyses of rules after three years so they have a true sense of the compliance costs for credit unions related to the benefit of the rule to consumers;
- require NCUA to conduct a study of the Central Liquidity Facility and make legislative recommendations for its modernization;
- give credit unions better control over their investment decisions and portfolio risk; and
- provide credit unions parity with FDIC-insured institutions when it comes to deposit insurance coverage on Interest on Lawyers Trust Accounts (IOLTAs).
“With member business lending addressed as part of H.R. 688, the ‘Credit Union Small Business Jobs Creation Act,’ and supplemental capital addressed in H.R. 719, the ‘Capital Access for Small Businesses and Jobs Act,’ this bill becomes the third major credit union specific proposal from our five-point plan for credit union regulatory relief to be offered in the House this Congress. We are pleased that the concept of regulatory relief for credit unions continues to gain Congressional support,” said NAFCU Vice President of Legislative Affairs Brad Thaler.
For more information on credit union regulatory relief and NAFCU’s comprehensive five-point plan, go to www.nafcu.org/regrelief.
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.