Newsroom

March 21, 2017

NAFCU welcomes joint EGRPRA report

NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt welcomed the joint banking agency report released Tuesday on efforts to reduce the regulatory burden for financial institutions.

The joint report was issued by the Federal Reserve Board of Governors, the Office of the Comptroller of the Currency and the FDIC and in conjunction with the NCUA. Focusing on the agencies' ongoing review of rules that might be outdated or unnecessary, the report was prepared under the Economic Growth and Regulatory Paperwork Reduction Act.

"The total regulatory burden on credit unions is at an all-time high. While it is encouraging to see regulators admit that there are opportunities to address outdated and unnecessary regulations, these acknowledgements should be coupled with action," said Hunt. "In particular, the NCUA portion of the report includes a number of key areas where NAFCU has sought reform. We look forward to continuing to work with NCUA and other regulators to address the problem of regulatory burden."

In his introductory statement to the report, NCUA Acting Chairman J. Mark McWatters specifically noted risk-based capital as an area the NCUA plans to "substantially revise" – which NAFCU has advocated.

The EGRPRA requires federal banking agencies and the Federal Financial Institutions Examination Council to conduct a review of their rules at least every 10 years. The NCUA currently participates in the EGRPRA process voluntarily. NAFCU has supported legislation that would put the NCUA, the CFPB and all Dodd-Frank Act measures under the EGRPRA review process.