Allowing access to supplemental capital will help ensure healthy credit unions can achieve manageable asset growth and continue to serve their member-owners efficiently as the country continues to recover from the financial crisis.
NAFCU has long advocated for regulatory reform that would authorize credit unions to issue supplemental capital. We believe that this is an option for improving capital buffers, encouraging growth, and meeting regulatory capital requirements-so long as it is compatible with the not-for-profit, cooperative structure of credit unions.
How This Impacts You
Access to capital markets is an important safety feature that guarantees that financial institutions can rebuild their capital after a crisis and support future growth. Unreasonable restrictions on credit union access to capital markets limits flexibility, decreases share value, and exposes credit unions to great risk in the event of an unexpected economic downturn.
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