WASHINGTON-An informal working group that has succeeded in getting Congress to introduce a bill on supplemental capital has now added a website to bolster its cause.
The group, which calls itself Coalition for Credit Union Access, has grown to approximately 35 credit unions and state associations, is pressing for passage of HR 3993, the Capital Access for Small Business and Jobs Act, which would empower NCUA to authorize qualified credit unions to accept additional forms of capital to supplement their retained earnings.
The Coalition provides details of its position and the legislation, which was introduced by Rep. Brad Sherman (D-CA) and Rep. Peter King (R-NY), on its new website at www.creditunionaccessforall.com. Linda Armyn, SVP-corporate strategy for Bethpage FCU in New York, said the Coalition has built strong support for the legislature, with CUNA, NAFCU, NASCUS, Treasury and NCUA all supportive of the measure.
Parker Cann, SVP and general counsel with BECU in Seattle, said the group was able in just two years to build support and get the legislation introduced because the bill is narrowly focused. Cann noted the banking lobby has expressed opposition to the plan.
Armyn said the financial crisis that credit unions have gone through and the inflow of deposits has made the need for supplemental capital apparent. NCUA, reminded Armyn, is the only agency that does not have power to permit supplemental capital, with the exception of community development CUs, many of which have leveraged such funds.
Armyn added that if the legislation does not pass the current Congress, it should have good momentum going into the next.
"We know about economc cycles, and the best time to ask for supplemental capial is when it's not needed," said Cann. "It's also good for the insurance fund, as it provides another buffer."
Both Cann and Arymn said they believe HR 3993 does not compete with separate legislation credit unions are seeking on member business lending, and instead complements it.
Other members of the Coalition include Gary Oakland, president of BECU, Benson Porter, incoming presidento f BECU, Kirk Kordeleski, CEO of Bethpage FCU, Debi Keesee, president of Spokane Media FCU, Joan Opp, president of Stanford FCU, and Debbie Peters, president of Incol CU in Pennsylvania.
