WASHINGTON NCUA Chairman Debbie Matz issued her support this morning for a bill that would allow credit unions to raise secondary capital.
“As we have all witnessed during the recent economic crisis, maintaining sufficient capital is critical at times of economic stress,” Matz said in a letter sent this morning to Rep. Peter King, R-N.Y., the chief sponsor of the bill.
Though the bill has been endorsed by the various credit union lobby groups, the backing of the government regulator adds weight to the legislative effort for secondary capital.
The NCUA Chairman said she supports provisions in the bill that would subject all secondary capital accounts to maturity limits consistent with international Basel standards and rules for redeemable capital of the Federal Home Loan Banks; and to ensure that secondary capital deposits do not affect the membership rights of existing credit union members or confer those rights on non-members.
“Should Congress choose to enact this prudent legislation, NCUA will promptly propose the necessary rule changes required for implementation,” wrote Matz.
