WASHINGTON-With the banking crisis eliminating any chances for regulatory relief legislation this year, credit unions are hoping to get their main reg relief priorities on the final train leaving Congress this year-the economic stimulus package expected to be debated after the congressional elections.
Both CUNA and NAFCU are calling on congressional leaders to consider adding enactment of a risk-based capital system for credit unions and increasing the maximum allowable business loans-the key provisions of the CU Regulatory Improvements Act-as part of an economic recovery package.
In letters to the Senate Banking and House Financial Services committees, CUNA President Dan Mica urged lawmakers to, focus on maintaining credit unions' strong capital levels by implementing robust regulatory tools and restoring credit unions' ability to fully meet the needs of their small business members during and after the credit crunch.
In this current credit crunch, said NAFCU President Fred Becker in a separate letter to Congress, "credit unions would like to provide members with more access to capital. It is disappointing that given the current economic environment where capital is limited, the arbitrary member business lending cap placed on credit unions over a decade ago remains in place."
Becker also said enactment of a risk-based capital system for credit unions "would more closely emulate the capital standards for FDIC-insured banks and would better enable NCUA to assign more appropriate capital standards to credit unions based on their risk."
The switch in tactics comes as members of both the House and Senate are calling for a move away from the deregulatory environment of the past decade and toward greater oversight and monitoring by regulators.
