CUs, NAFCU log 'wins' in new Treasury Department report
The Treasury Department released a report Monday that is filled with credit union-specific and NAFCU-requested recommendations aimed at helping the industry better serve its members and communities. Citing NAFCU's Annual Report on Credit Unions multiple times, the Treasury report recommends a review of credit union capital requirements and the "current expected credit loss" accounting standard.
NAFCU was the only credit union trade association directly cited in the report.
"While still reviewing, NAFCU applauds many key portions of Treasury's report," said NAFCU President and CEO Dan Berger. "NAFCU has met and engaged with the Treasury Department and the White House on multiple occasions during the development of this report and identified meaningful opportunities for regulatory relief that would aid credit unions.
"While there is substantial work that remains ahead, NAFCU looks forward to building off of the groundwork laid by Treasury's recommendations to strengthen credit unions and the communities they serve," Berger added.
Among the "wins" for the credit union industry, the Treasury Department recommends:
- revising the risk-based capital requirements to only apply to credit unions with total assets in excess of $10 billion or eliminating altogether RBC requirements for credit unions satisfying a 10 percent simple leverage (net worth) test and allowing credit unions subject to RBC requirements to have access to supplemental capital;
- ensuring an extended examination cycle of at least 18 months, and extending that relief to institutions above $1 billion in assets;
- having the CFPB provide rulemaking or guidance on UDAAP;
- reforming the governance of the CFPB, including the possibility of changing the sole director to a bipartisan commission; and
- better tailoring of regulations and raising thresholds of their application, including regulations on qualified mortgages.
Monday's report is pursuant to President Donald Trump's executive order, "Core Principles for Regulating the United States Financial System."
NAFCU will ensure that any regulatory relief package from Congress provides just as much relief for credit unions as banks.
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