March 14, 2014 – Rep. Peter King, R-N.Y., in a statement submitted for the record of a House Financial Services Committee mark-up Thursday, called for action on a NAFCU-sought credit union supplemental capital bill he introduced last year with Rep. Brad Sherman, D-Calif.
H.R. 719, the “Capital Access for Small Businesses and Jobs Act,” would allow federal credit unions to receive payments on eligible uninsured, non-share capital accounts. It reflects a key element of NAFCU’s five-point plan for credit union regulatory relief.
NAFCU President and CEO Dan Berger wrote the committee Tuesday to urge action on the the bill. He said the measure is particularly timely given NCUA’s current proposed rule on risk-based capital, which could require some credit unions to shoulder a disproportionate amount of burden related to the safety and soundness of the credit union industry.
“We strongly urge the committee to work with the NCUA to construct a fair and sustainable legislative solution,” Berger wrote. “Currently, some credit unions can seek relief through obtaining supplemental capital. One step to improve this situation would be allowing all credit unions to have access to supplemental capital.”