Feb. 27, 2013 – The Coalition for Credit Union Access launched a video in support of H.R. 719, a NAFCU-backed measure that would authorize credit unions to accept non-share forms of capital that do not alter their cooperative nature.
The coalition video points to the need for access to supplemental capital to address balance-sheet developments that could trigger prompt corrective action by NCUA. For example, it notes that an increase in deposits could dilute a credit unions’ net worth and trigger regulatory action. “This restriction on raising capital is hurting not only credit unions, but also the communities that credit unions serve,” the group says.
This supplemental capital bill, the Capital Access for Small Businesses and Jobs Act, is similar to legislation offered the last Congress. It incorporates language agreed upon by NAFCU and CUNA during a meeting at NAFCU’s 2010 Congressional Caucus.
The two groups wrote to NCUA Chairman Debbie Matz requesting her assistance moving the proposal forward. Both NCUA and NASCUS support access to supplemental capital for credit unions.