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NAFCU Vice President of Legislative Affairs Brad Thaler urged the leaders of the Senate Banking Committee to support regulatory relief for credit unions in a letter sent ahead of a committee hearing today on consumer finance regulations.

The committee is holding a hearing on the impact of consumer finance regulations on consumers. Titled "Assessing the Effects of Consumer Finance Regulations," it will include witnesses from the U.S. Chamber of Commerce Center for Capital Markets Competitiveness and the Law and Economics Center of the George Mason School of Law.

"The impact of the growing regulatory burden on credit unions is evident in the declining number of credit unions, dropping by 23% (more than 1,800 institutions since 2007)," Thaler wrote. "A main reason for the decline is the growing cost and complexity of complying with the ever-increasing onslaught of regulations. Since the second quarter of 2010, we have lost 1,200 federally insured credit unions, 96% of which were smaller institutions below $100 million in assets.

"Many smaller institutions simply cannot keep up with the new regulatory tide and have had to merge out of business or be taken over," he continued. "There is an urgent need for Congress to enact meaningful regulatory relief."

On Thursday, CFPB Director Richard Cordray will testify before the committee on the bureau's semi-annual report. NAFCU will monitor the hearing for its potential impact on credit unions.