NAFCU urges Senate to consider CUs' capital needs
NAFCU's Brad Thaler wrote to Senate Banking Committee leadership in advance of today's hearing on capital formation and corporate governance to urge the committee to take action to allow credit unions to better serve their members.
"As the Committee considers capital formation issues that may benefit a number of businesses including banks and other financial companies, we also urge you to act in three areas to help credit unions meet the capital needs of their members," said Thaler, NAFCU's vice president of legislative affairs.
The letter was sent to Chairman Mike Crapo, R-Idaho, and Ranking Member Sherrod Brown, D-Ohio, and requested the committee advance legislation addressing the following:
- Allow all types of credit unions to serve underserved areas: In the last Congress, a NAFCU-backed bill was introduced that would have allowed any credit union to petition the NCUA to allow the credit union to add underserved areas to their existing field of membership.
- Delay the NCUA's risk-based capital rule: NAFCU has advocated for a two-year delay in the rule to give credit unions more time to comply while providing the NCUA time to update the rule.
- Provide NCUA flexibility in loan maturity limits: NAFCU supports giving the NCUA Board the power to extend the 15-year limit on federal credit union loans to longer terms for certain types of loans as it deems necessary.
To read the full letter, click here.
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