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This week: NAFCU pursuing RBC relief, data security standard
The House and Senate are not in session this week, giving credit unions an opportune time to connect with legislators while they're back in their home districts and states. After the historic passage of the NAFCU-backed regulatory relief package (S. 2155), the association is focused on getting relief from the NCUA's risk-based capital (RBC) rule and creating a national data security standard.
NAFCU's Grassroots Action Center has all the resources credit unions need to engage with their lawmakers, including contact and background information on legislative issues. NAFCU lobbyists are also active on Capitol Hill, meeting with staff from House and Senate offices to ensure credit unions concerns are heard. Here is more information on NAFCU's stances on RBC and data security:
NCUA's Risk-Based Capital Rule
In recent weeks, NAFCU efforts have led to the inclusion of language to delay the implementation of the NCUA's RBC rule by two years in two major pieces of legislation: the House Appropriations Financial Services and General Government's appropriations bill, and the Foreign Investment Risk Review Modernization Act of 2018 (H.R. 5841).
The language included in both bills comes from the Common Sense Capital Relief Act (H.R. 5288), which was introduced by Reps. Bill Posey, R-Fla., and Denny Heck, D-Wash., in March. NAFCU President and CEO Dan Berger recently met with Posey and Heck to thank them for their ongoing efforts to protect the industry from the adverse effects of this rule.
Over the past three years, NAFCU has consistently opposed the NCUA's RBC rulemaking and urged its modification or delay because of the adverse effects it would have on the credit union industry – particularly as a result of regulatory burdens and costs.
National Data Security Standard
NAFCU has been active with lawmakers since the massive 2013 Target data breach stressing the need for a legislative solution to reform the nation's data security system, and has been a leader in advocating for national data security standards – akin to those followed by credit unions – in an effort to curb future breaches.
During a hearing last week, Senate Banking Committee Chairman Mike Crapo, R-Idaho, and Ranking Member Sherrod Brown, D-Ohio, made clear they intend to focus the committee's efforts on cybersecurity now that the regulatory relief package has been signed into law. Ahead of the hearing, NAFCU Vice President of Legislative Affairs Brad Thaler sent a letter outlining priorities NAFCU and credit unions would like to see incorporated in data security legislation.
NAFCU remains active on Capitol Hill and will work with Senate Banking Committee members as they pursue a legislative solution, in addition to working with Reps. Blaine Luetkemeyer, R-Mo., and Carolyn Maloney, D-N.Y., on draft legislation that would create a national standard.
Also happening this week:
- Tomorrow, NAFCU Services Preferred Partner Velocity Solutions is offering a webinar to help credit unions establish short-term, small-dollar loan programs. The NCUA Board last week issued a proposed rulemaking to enhance credit unions' payday alternative loans (PALs).
- Friday is the last day for credit unions to participate in this month's Economic & CU Monitor survey, focused on Bank Secrecy Act and customer due diligence rule compliance.