NAFCU Letter to Capito & Maloney on Supplemental Capital for CUs

May 17, 2012

The Honorable Shelley Moore Capito                
Chairman                                                         
House Financial Services Subcommittee on Financial Institutions and Consumer Credit        
United States House of Representatives            
Washington, D.C. 20515                                   

The Honorable Carolyn Maloney
Ranking Member
House Financial Services Subcommittee on Financial Institutions and Consumer Credit
United States House of Representatives            
Washington, D.C. 20515                                   

Re: Capital Requirements and Support for H.R. 3993, the Capital Access for Small Businesses and Jobs Act

Dear Chairman Capito and Ranking Member Maloney:

I write today on behalf of the National Association of Federal Credit Unions (NAFCU), the only trade association exclusively representing our nation’s federally chartered credit unions, in conjunction with tomorrow’s hearing on regulatory capital requirements post Dodd-Frank. NAFCU appreciates the subcommittee’s attention to this matter.

As you may know, Representatives Peter King (R-NY) and Brad Sherman (D-CA) have introduced bipartisan legislation (H.R. 3993) that would authorize the National Credit Union Administration (NCUA) to allow credit unions to access supplemental forms of capital that do not alter their cooperative nature. This legislation would improve the ability of credit unions to serve their nearly 94 million members by enhancing their ability to react to market conditions and by encouraging healthy growth. This is an important step in ensuring that credit unions can continue to accept new deposit shares, even during tough economic times when demands for other services may be lower.

Credit unions did not engage in the risky lending that led to the financial crisis and continue to serve as a vital source of capital and market liquidity in their local communities. As the subcommittee continues to review capital requirements for financial institutions, NAFCU is hopeful that access to supplemental capital for credit unions is considered.   

If my colleagues or I can be of assistance to you or if you have any questions regarding this issue, please feel free to contact me or NAFCU’s Vice President of Legislative Affairs, Brad Thaler, at (703) 842-2204.

Sincerely,

B. Dan Berger
Executive Vice President, Government Affairs

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