A robust credit union industry is good for our nation’s economy, as credit unions fill a need for consumers and small businesses in the financial services marketplace that may otherwise not be met by other institutions. NAFCU was the first trade association to call on Congress to provide comprehensive broad-based regulatory relief for credit unions. We remain committed to reducing regulatory burdens on credit unions in order to significantly enhance their ability to create jobs, help consumers, and boost our nation’s economy.
There are some basic tenets of a healthy and appropriate regulatory environment that NAFCU supports:
A regulatory environment that allows credit unions to grow. There must be a governing framework that encourages innovation and allows credit unions the freedom to provide consumers and small businesses with access to credit. NAFCU believes that credit unions should not be limited by outdated laws or regulatory red tape, but instead provided with modernized capital standards for the 21st century.
Appropriate, tailored regulation for credit unions and relief from growing regulatory burdens. Regulatory burdens can weigh heavily on credit unions, as they are often faced with rules targeting bad actors rather than community institutions. NAFCU supports a cost-benefit analysis of any legislation and believes that enforcement orders from regulators should never take the place of regulation.
A fair playing field. Credit unions should have the same opportunities as banks and non-regulated entities to provide credit to our nations consumers and small businesses. NAFCU wants to ensure that everyone follows the same rules and unregulated entities, such as payday lenders, do not escape oversight. Also, that there is a federal regulatory structure for non-bank financial services market players, including emerging Fintech companies.
Transparent and independent oversight. Regulators need to be transparent in their actions, with the opportunity for public input, and should respect possible different viewpoints. NAFCU believes a bipartisan commission structure is the best form of regulatory governance for independent agencies, and all stakeholders should be able to have input into the regulatory process.
A strong, independent NCUA as the primary regulator for credit unions. With a proven track record of success, the National Credit Union Administration (NCUA) is best situated with the knowledge and expertise to be the sole regulator for credit unions and to work with other regulators on joint rule making when appropriate. NAFCU believes that Congress should make sure that NCUA has the tools and powers that it needs to effectively regulate the industry.
Please be assured that NAFCU will continue to push for commonsense regulatory reform on Capitol Hill with an emphasis on the five areas outlined in our plan below and available for download.