NASCUS Supports Supplemental Capital Legislation
ARLINGTON, VA – Today, Representatives Peter King (R-NY) and Brad Sherman (D-CA) introduced the Capital Access for Small Businesses and Jobs Act, legislation that will allow credit unions to access supplemental capital, a reform long supported by NASCUS. This bill is similar to H.R. 3993 which was introduced in the 112th Congress.
“NASCUS applauds the introduction of this bill and enthusiastically supports its intent and passage by Congress,” said NASCUS President and CEO Mary Martha Fortney. “For NASCUS and state regulators, access to supplemental capital for credit unions has always been a matter of safety and soundness.”
“This critical reform is sound regulatory policy and gives healthy and well-managed credit unions the necessary capital flexibility to respond to economic conditions, both in good times and bad,” said NASCUS Chairman Orla Beth Peck (UT). “Credit Union Advisory Council Chairman Cathie Tierney, (Community First CU, WI), joins me in expressing support of this important legislation,” she added.
NASCUS and state regulators have long supported supplemental capital for qualifying credit unions to enhance safety and soundness. Supplemental capital would also provide options for credit unions to meet necessary capital levels in a manner consistent with advanced financial systems worldwide. In addition to working diligently over many years within the credit union system to build consensus on this issue, NASCUS has worked with policymakers providing Congressional testimony numerous times about the importance of this issue. State credit union regulators have long recognized that credit unions are disadvantaged by a capital structure limited to retained earnings, and this legislation would provide the solution to this problem.
“NASCUS and state regulators have been at the forefront of this issue for years, and have worked diligently to build consensus with industry trade groups, the NCUA, Treasury and others to allow US credit unions the benefits supplemental capital would allow,” Fortney added. “We congratulate the Coalition for Credit Union Access and everyone responsible for the bill’s introduction and will work to make supplemental capital a reality.”