Matz Touts Expanded Reg-Flex
ALEXANDRIA, Va. - (07/25/05) -- NCUA Board member Deborah Matzhailed the NCUA's Board's proposal to expand the agency'sregulatory flexibility program for well managed credit unions andinvited credit unions to make new suggestions on how the programcan be expanded. "I invite commenters to take this opportunity toconsider other regulations that could qualify for a RegFlexexemption, providing they would have no negative impact on safetyand soundness," Matz said of the proposal to expand the eligibilityfor Reg-Flex to all credit unions with more than 7% net worth, fromthe current 9%. The proposal was issued for public comment lastweek. Matz also applauded a proposal that would ease uprestrictions on secondary capital for low-income credit unions"This proposed change will encourage more eligible credit unions toseek a low-income designation. Since early 2002, the number oflow-income credit unions has grown 32%, from 789 to 1,040. But thisis still only about one-third of those eligible for thedesignation. I think many credit unions don't apply because theydon't know about the advantages the low-income designation affordsthem," she said.