March 13, 2013 - NAFCU President and CEO Fred Becker touts the association's five-point plan for broad-based credit union regulatory relief in a new video interview on CUbroadcast.com, noting that the plan has already been well-received by the industry.
Speaking with CUbroadcast.com host Mike Lawson, Becker explains why the association is seeking administrative improvements for NCUA, capital reforms, structural improvements for credit unions, operational improvements for credit unions and data security reforms.
- Administrative improvements for NCUA - Becker noted that individual federal credit unions should be able to have parity with state-chartered credit unions under broader state rules. He also said NAFCU is seeking a cost/benefit analysis on rulemakings and better access for credit unions to the Central Liquidity Facility.
- Capital reforms - Becker told Lawson that prompt corrective action requirements pose a problem for credit unions since they were designed with for-profit institutions in mind. He said credit unions need a risk-based approach to capital. NAFCU is asking NCUA to modernize capital standards accordingly.
- Structural improvements for CUs - Becker cited some examples where outdated governance rules are making it harder for credit unions to serve members and underserved populations. NAFCU is seeking an improved field-of-membership expansion process and more flexibility for credit unions that merge or that seek to serve underserved areas.
- Operational improvements - The association is seeking greater member business lending authority for credit unions, Becker said, and is aiming its push, in part, at helping to make it easier for credit unions to make loans to small businesses. NAFCU is also seeking other operational improvements, including revised investment powers and more-flexible loan rules.
- Data security reforms - Becker noted that President Obama issued an executive order on cybersecurity but that "we need to go further." To that end, NAFCU is seeking legislation that would, among other things, hold merchants accountable for the costs of data breaches; set national standards for safekeeping of all financial information; require merchants to disclose their data security policies to customers; and require timely disclosures in the event of a breach.
Becker also noted that NCUA is taking the five-point plan "under advisement." He said that NAFCU is hoping the agency will "get behind" the plan. "The CLF and underserved areas are perfect examples," Becker said.