Hyland Promises To Reduce Reg Burden
WASHINGTON-NCUA Board Member Gigi Hyland told CUNA's GAC that she understands the need to actively pursue new avenues for growth, and that the agency is going to do its part by reducing regulatory burden through the review process and increasing the definition of a small credit union to $50 million.
Hyland offered two ideas for modernizing the regulatory environment. First, Hyland called for a fresh look at NCUA's review of its regulations in an effort to reduce regulatory burden and, second, Hyland endorsed capital reform, including PCA reform and the authorization of supplemental capital for credit unions.
NCUA Chairman Debbie Matz had earlier also endorsed secondary capital in her remarks.
Hyland noted that currently, in compliance with IRPS 87-2 and IRPS 03-2, NCUA reviews all its regulations every three years to update, clarify and simplify existing regulations and eliminate redundant or unnecessary provisions. In addition, she noted NCUA must issue for comment an initial regulatory flexibility analysis for any regulation that will have a significant economic impact on a substantial number of small entities. Credit unions under $10 million in assets are currently considered "small entities."
"My belief is that it is time to update and modernize IRPS 87-2 and IRPS 03-2 given the significantly different circumstances for credit unions in 2011," Hyland said. "We need to ensure that we are continuing to fully comply with the intent of the policy. I believe NCUA should seriously consider revising the definition of "small entity" to a larger number, perhaps from $10 million to $50 million."
An increase in the threshold to $50 million would capture a percentage of credit unions much closer to the original percentage captured by the asset standard when it was first adopted, Hyland added.