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Lawmakers from both sides of the aisle yesterday praised credit unions and told NAFCU Congressional Caucus attendees of their support for regulatory relief generally for small institutions.

Strong support for regulatory relief for credit unions and community banks came from Rep. Bill Posey, R-Fla., who echoed NAFCU's concern about the accelerating decline in the number of credit unions since enactment of the Dodd-Frank Act. He also noted concern about NCUA's risk-based capital proposal and said the the "Risk-Based Capital Study Act of 2015" (H.R. 2769), which he has cosponsored, would help by requiring NCUA to study the impact of its current RBC proposal before implementing a final rule.

Sen. David Vitter, R-La., who chairs the Senate Banking subcommittee on small business, discussed stalled efforts in the full committee to pass relief legislation spearheaded by Chairman Richard Shelby, D-Ala. The bill includes provisions for public NCUA budget hearings, statutory relief from annual privacy notice requirements and more. But responding to an audience member on another relief plea – support for a member business lending cap increase – he warned against further stoking of the banking industry's focus on credit unions' tax exemption.

Maxine Waters reiterated strong support for an increase in the MBL cap. (Dietsch photo)

Rep. Maxine Waters, D-Calif., ranking member of the House Financial Services Committee, reiterated her support for credit unions and legislation that would increase their ability to provide loans to member small businesses. She noted the decline in banks' provision of business loans involving less than $100,000 and said credit unions are needed to fill that gap. In fact, she said action in this area would also help address rising wealth disparities.

Rep. William Lacy Clay, D-Mo., echoed that support. "The number of Americans involved in early-stage entrepreneurship [is reaching] record numbers," he said, "but as you know, banks have substantially reduced their lending to small businesses."