We need comprehensive capital reform for credit unions, such as allowing access to subordinated debt sources and making the statutory changes necessary to design a true risk-based capital system.
We believe that capital standards for credit unions must be modernized and reflect the realities and challenges of the 21st century financial marketplace. NAFCU remains concerned about the impact the risk-based capital rulemaking will have on the credit union industry, including regulatory burden and increased costs. NAFCU continues to advocate for additional capital flexibility and will be providing comments in response to the NCUA’s 2020 proposal on subordinated debt.
How This Impacts You
Credit unions did not engage in the risky lending practices that led to the financial crisis and have not cost taxpayers a single dime. Given the negative impact the National Credit Union Administration’s (NCUA) risk-based capital proposal could have on credit unions, it has never been more important for Congress to consider allowing credit unions access to subordinated debt sources.
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