Minimum capital requirements

Ahead of the House vote Thursday on the Financial Choice Act, the two parties were assailing each other as proxies for Wall Street and painting themselves as defenders of community banking and the consumer.

The Congressional Budget Office said only community banks would choose to hold higher capital in return for fewer rules while lowering its estimate of cost savings of eliminating new FDIC resolution powers.

The comment period on NCUA's notice of proposed rulemaking on alternative capital ended last week, and judging by the letters, another battle is brewing.

In addition to strong membership growth, the CU now boasts $8.1 billion in assets, up by more than 8 percent from last quarter.

Stakeholders have until May 9 to offer their thoughts on how to design an additional source of capital for credit unions.

The House proposal establishes a 10% leverage ratio as the standard for bank strength, but it says nothing about the riskiness of the bank’s business or the size of its exposure to economic downturns.

Regional banks don’t pose risks to the financial system that have caused concern among policymakers, executives of 18 banks told top Republican and Democratic lawmakers in Congress.

Initial regulatory steps toward giving credit unions access to alternative sources of capital could add to bankers' concerns that their tax-advantaged rivals are expanding beyond their mission.

Bankers are sure to pounce on the chairman’s statement that this could 'change what it means to be a credit union.'